Purpose – How do business groups manage their internal processes? The purpose of this article is to explore how board interlocks between members serve as control and coordination mechanisms within business groups. We propose that centrality of groups’ affiliates in the group network of interlocking directorates is shaped by agency and resource dependence forces. In particular, we examine the role of international board ties as a resource and information conduit. Design/methodology/approach – This study leverages proprietary information on firm-to-firm transaction ties among all 155 affiliates belonging to a large Italian business group. We use network analysis to develop multiple measures of the centrality of each group member, and link these to resource transactions, ownership patterns, and geographic distributions. We test our hypotheses in a structural equation model using LISREL. Findings – Our results demonstrate that both resource exchange the presence of cross-national relations increase an affiliate’s central position in the group’s network of board ties. In contrast, ownership ties between members were unrelated to affiliate centrality. Originality/value – Internal governance mechanisms of business groups are rarely studied. While groups are often portrayed as inefficient or value-destroying, our analysis of proprietary firm data suggests a very different scenario: Inter-unit ties are much more supportive of a model of business groups as strategic portfolios, using internal ties to share information and resources.
Coordination, Control, or Charade? The Role of Board Interlocks among Business Group Members / Zona, F.; Boyd, B. K.; Takacs, Haynes. - STAMPA. - 2018:-(In corso di stampa), pp. 1-25.
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|Titolo:||Coordination, Control, or Charade? The Role of Board Interlocks among Business Group Members|
|Autori:||Zona, F.; Boyd, B. K.; Takacs, Haynes|
|Titolo del periodico:||MANAGEMENT DECISION|
|Anno di pubblicazione:||9999|
|Numero e parte del fascicolo:||-|
|Citazione:||Coordination, Control, or Charade? The Role of Board Interlocks among Business Group Members / Zona, F.; Boyd, B. K.; Takacs, Haynes. - STAMPA. - 2018:-(In corso di stampa), pp. 1-25.|
|Appare nelle tipologie:||03.1 Articolo su rivista (Journal article)|