Interlocking directorates and director recruitment: A longitudinal analysis of a 3-mode network
(English)Manuscript (preprint) (Other academic)
This paper examines the network impact on recruitment of new board members. Analyzing a longitudinal 3-mode network, all recruitment done at firms listed on the Stockholm Stock Exchange between 1990-2005 is examined. It is shown that new board members tend to be recruited through already existent links in the interlocking directorship network, but also through the network of common ownership. This applies to directors that have personal contact with a director and/or owner of the recruiting firm. There is, however, no positive network effect for directors further removed from the recruiting firms, or being in close proximity to the recruiting boards’ chairmen. It is also shown that the benefit of personal contacts with the recruiting boards’ directors is substantial, potentially more than four times higher than would be expected if network distance were of no importance in the recruitment process.
Social network analysis, Director interlocks, Director recruitment, Ownership, 3-mode networks
Research subject Sociology
IdentifiersURN: urn:nbn:se:su:diva-36772OAI: oai:DiVA.org:su-36772DiVA: diva2:290118