When Theory Meets Methods: The Naissance of Computer Assisted Corporate Interlock Research

Fennema, Meindert; Heemskerk, Eelke M.

doi:10.2139/ssrn.2827627

Cited by 5 publications

(9 citation statements)

References 29 publications

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“…The field of transnational interlocks, however, has been characterized by a lack of rigorous empirical research. The primary reason for this is that gathering high-quality network data at a global level is complex (Fennema and Heemskerk, 2018). Even if global network data become available, gathering attribute data to complement it, such as detailed firm or director characteristics, will be a daunting task.…”

Section: Limitations and Future Research Recommendationsmentioning

confidence: 99%

Transnational board interlocks

González

2019

CCSM

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Purpose While previous studies have focused on the role of directors in the formation of transnational interlocks, this paper argues that firm strategy can also influence the development of these relationships. The purpose of this paper is to shed light on the practice of transnational interlocks by extending board interlocks theory from the national to the transnational context, and exploring aspects that are unique to the transnational level. Design/methodology/approach Based on the experiences of four British firms, this paper develops a conceptual framework that integrates under-examined dimensions of this networking practice at the organizational level of analysis, specifically degree of internationalization (DOI) and psychic distance (PD). Findings The paper argues that firms will increasingly engage in transnational interlocks as internationalization intensifies, and that expansion into psychically distant countries may result in further engagement in these connections. Further, firms will tend to form transnational received interlocks at their early stages of internationalization, and transnational sent and neutral interlocks at later stages of this process. It identifies four categories of firms: locals, extenders, explorers and cosmopolitans. Practical implications Directors can contribute to their firms’ success by interlocking with firms located in key foreign markets. Firms should also welcome directors with transnational board appointments to secure knowledge and resources overseas. Originality/value The manuscript contributes to our understanding of transnational interlocks by examining the independent and joint influence of the firm’s DOI and PD on the formation of such relationships.

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Section: Limitations and Future Research Recommendationsmentioning

confidence: 99%

Transnational board interlocks

González

2019

CCSM

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“…After the methodological and theoretical developments of the 1970s and early 1980s, power structure research experienced a decline as several of the key scholars moved to organizational studies and business schools (Fennema and Heemskerk 2016). Starting in the early 2000s, globalized capitalism provided a new impetus for the study of interlocking directorates.…”

Section: Main Findingsmentioning

confidence: 99%

“…With advances in the 1970s in computing capacity and the contemporaneous development of graph theory as a branch of applied mathematics attuned to networks, social scientists turned to network analysis as a means of representing elite and intercorporate relations. In a case of "multiple discovery", such developments emerged from similar concerns on both sides of the Atlantic (Fennema and Heemskerk 2016). Using social network analysis, scholars in both the United States and the Netherlands developed an evidence-based body of literature exposing the structure of corporate power that provided an alternative to pluralist accounts which had portrayed economic and political power as relatively dispersed and segregated into separate fields (Helmers et al 1975).…”

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confidence: 99%

Interlocking directorates and corporate networks

Sapinski¹,

Carroll²

2018

Handbook of the International Political Economy of the Corporation

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This chapter provides an introduction to the literature on interlocking directorates and corporate networks. It first traces the historical roots of the field back to the early 20th century, when researchers on both sides of the Atlantic started expressing concern about the threat to democratic process posed by the emergent corporate form, the potential for collusion allowed by the growing practice of interlocking directorate, and the general concentration of power in the hands of large firms and banks. It then outlines the major theoretical approaches employed, that focus on the corporate network as a set of both interorganizational and interindividual relationships. Third, it summarizes the main findings on the cohesiveness of the corporate community, the hegemonic position of banks, and historical changes and longitudinal dynamics of the network. Finally, it discusses most recent debates on the globalization, the emergence of a European corporate network, and the decline and recomposition of the corporate community. Introduction: problem, methods and approaches Power structure research and social network analysis Early studies of interlocking directorates and corporate networks date from the formative era of corporate capitalism at the turn of the twentieth century, when many of the smaller firms of competitive capitalism were consolidated into the forerunners to today's giant corporations. These studies were motivated by a deep concern over the increasing potential for collusion which the corporate form brought about, which for some threatened competitive markets, but for others posed a direct threat to democratic institutions, as power was being hoarded for the benefit a minority. In the first important investigation, Otto Jeidel (1905) discovered 1350 interlocking directorates in Germany between the six biggest banks and industry. For him, the interlocks network marked "a new phase in German industrial development caused by concentration and launched by the economic crisis of 1900" (Fennema and Schijf 1978: 298). Jeidel's is precisely the diagnosis at the centre of Rudolf Hilferding's Finance Capital (1981 [1910]). In the same era, Louis D. Brandeis

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“…Networks of board interlocks, i.e. links between companies through shared board members (Burt, 1978), have been studied for a long time (Fennema & Heemskerk, 2018; Mizruchi, 1996) and have not only been found important for the access to information and opportunities (Haunschild & Beckman, 1998), but also the assimilation of strategy and practices (Davis, 1996; Haunschild, 1993).…”

mentioning

confidence: 99%

“…With few exceptions, these are all focused on a specific part of the business community, namely the largest, public corporations. Much focus has also been on the global board network formed by the “elite” (Fennema & Heemskerk, 2018), as large companies recruit persons worldwide to their board of directors. This creates a global network of board interlocks (Cárdenas, 2015; Heemskerk, 2011; Heemskerk et al., 2016b), giving the companies access to information, opportunities and resources.…”

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confidence: 99%

Joined by remoteness: An exploratory comparison of regional board networks in Sweden

Dahlin

Patel

2021

Global Networks

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Studies of the global corporate elite have shown how networks of board interlocks form among large companies around the world. With interest in the conditions for businesses in the periphery, this exploratory study describes differences in regional board networks by comparing remote and central regions in Sweden. The regions share national culture, language and legislation and have similar demographics. We study business contexts far from the international spotlight and include all companies, not just the very largest, to capture the diversity of geographically dispersed business communities in Sweden. Findings suggest that being peripheral in a geographical sense can prove beneficial in terms of board network structure. The regional board networks in the remote regions are more inclusive and less fragmented, thus showing structural characteristics associated with the more effective spread of information. The regional networks formed in the geographic periphery thus appear to be beneficial for business. The findings in this exploratory story indicate that companies in the geographic periphery can be joined by remoteness.

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When Theory Meets Methods: The Naissance of Computer Assisted Corporate Interlock Research

Abstract: When theory meets methods: The naissance of computer assisted corporate interlock research Fennema, M.; Heemskerk, E.M.

Cited by 5 publications

References 29 publications

Transnational board interlocks

Transnational board interlocks

Interlocking directorates and corporate networks

Joined by remoteness: An exploratory comparison of regional board networks in Sweden

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