The power and peril of board interlocks |
Abstract:
In order to compete, firms must constantly gather and assess information that will help them identify and evaluate emerging opportunities. Their social context is instrumental in determining what information they have to work with and how they might make sense of and act upon that information. Unfortunately, many firms allow themselves to become under-connected, which isolates them fromnew sources of information, or over-reliant on just a few connections, creating a bottleneck for the flow of information. Herein, we describe how these problems manifest themselves among the network of interlocked directors, which is created when directors of firms sit on multiple boards. This network is so vast and complex that fully understanding the position and structure of a given firm’s board interlocks remains elusive. Toward solving this problem, we offer five keys to developing a board with effective interlocks, as well as three cautions regarding how board interlocks could potentially hurt firms. |
| Keywords: |
Board of directors; Social networks; Corporate governance; Diffusion; Board interlocks |
| Author(s): |
Brian L. Connelly , Erik J. Van Slyke |
| Source: |
Business Horizons (2012) 55, 403—408 |
| Subject: |
پیرامون مدیریت |
| Category: |
مقاله مجله |
| Release Date: |
2012 |
| No of Pages: |
6 |
| Price(Tomans): |
0 |
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بر اساس شرایط و ضوابط ارسال مقاله در سایت مدیر، این مطلب توسط یکی از نویسندگان ارسال گردیده است. در صورت مشاهده هرگونه تخلف، با تکمیل فرم گزارش تخلف حقوق مؤلفین مراتب را جهت پیگیری اطلاع دهید.
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