The Strategic Context of External Network Ties

The Strategic Context of External Network Ties

Author: Mason A. Carpenter

Publisher:

Published: 2001

Total Pages:

ISBN-13:

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Prior research has given little consideration to external determinants of knowledge and perspective that may affect directors' ability to contribute to the strategic decision making process. We introduce a framework on board involvement in which the potential for directors to contribute to firm governance and strategic decision making (i.e., in the form of monitoring and advising top management) is critically influenced by (1) whether they hold appointments to other firms with more or less-related product, corporate, and international strategies, and (2) whether such a portfolio of board appointments is suited to the degree of environmental instability surrounding the focal firm. Hypotheses are tested with a comprehensive data set that combines archival reports with behavioral data obtained through surveys of Forbes 1000 directors and CEOs. The findings suggest that while the simple number of director appointments to other boards does not influence board involvement, appointments that have the potential to provide directors with relevant strategic knowledge and perspective do enhance the board's ability to contribute to the strategic decision making process. Support for the theoretical framework presented in this study helps answer recent calls for board research that examines the quot;substantive contextquot; of board appointments, and moves our understanding beyond the number of such appointments or director independence as predictors of board decision making. The findings also show the potential power of models that link the broader, social-structural context in which boards are embedded, as well as the environmental conditions that surround them, with micro-behavioral processes that occur inside the quot;black boxquot; of corporate boards.


The Strategic Impetus for Social Network Ties

The Strategic Impetus for Social Network Ties

Author: James D. Westphal

Publisher:

Published: 2012

Total Pages: 0

ISBN-13:

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Research on organization-environment relations has focused primarily on formal linkages between organizations such as board interlock ties as a strategy for managing resource dependence. This study examines whether top corporate executives may maintain more informal ties to executives of other firms in order to manage uncertainty arising from resource dependence. Our point of departure is prior research on boards of directors that has examined whether so-called 'broken board ties' (i.e., ties that are disrupted due to executive turnover) tend to be reconstituted, and whether resource dependence explains the likelihood of reconstitution. These studies have generally provided little evidence that corporate board ties are used to manage resource dependence. We draw from theory and research on social embeddedness and friendship to suggest that, as a strategy for managing dependence, the maintenance of friendship ties between top executives provides benefits that are comparable to the supposed benefits of board cooptation, while imposing fewer constraints on the organization. Our theory leads to the contention that, despite limited prior evidence that resource dependence determines the formation of formal board ties, corporate leaders may nevertheless reconstitute informal (i.e., friendship) ties to leaders of other firms that have the power to constrain their firms' access to needed resources when those ties have been disrupted (e.g., due to turnover of the CEO's friend). We test our hypotheses with a unique dataset that includes survey data from U.S. corporate leaders collected at two points in time, thus permitting an assessment of whether top executives reconstitute broken social ties to leaders of other firms, and whether various sources of resource dependence predict the likelihood of reconstitution. We discuss implications for strategic perspectives on inter-organizational relations and the sociological literature on embeddedness.


More Than Just a Tie

More Than Just a Tie

Author: Holly Loncarich

Publisher:

Published: 2020

Total Pages: 428

ISBN-13:

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Researchers often rely on social network theory to understand both the structural antecedents and outcomes of strategic alliances. However, many alliance studies only emphasize the existence of a tie and rarely theorize further about their efficacy. This failure to consider the role and variation of content in alliance ties (e.g. resource commitment, trust, information exchange) may hinder the application of various network theories at the interorganizational level. Further, interorganizational network studies have largely neglected the role of the external environment, or context, in interfirm collaboration and often fail to consider how the external environment shapes firm network actions and outcomes. Thus, interorganizational network research should consider both tie content-the type of tie(s) formed between firms-and tie context-the external environment as a network level exogenous factor-in interorganizational network research theory building. In chapter 1, I introduce and test a multilevel, environmental contingency approach to strategic alliance networks that integrates both tie content and context to explain how optimal network structure develops over time and how firms can expect to derive network benefits. In doing so, I show that organizations must carefully consider both the nature of their ties and the competitive context in which these firms reside. I test this framework in a series of two studies in chapters 2 and 3. In chapter 2, I explore how key network exogenous factors, namely institutional context and the task environment, influence alliance partner selection strategies. In chapter 3, I integrate tie content, strategic alliance governance structure and status asymmetry, to explore how these two factors jointly interact with the external environment to influence the legitimacy outcomes of firms. I show that both alliance partner selection strategies and whole network level external factors largely influence potential firm partnering outcomes. In doing so, this study introduces an integrated environmental contingency and tie context-centric approach to network theory, answering calls in the literature for a more fine-grained approach to social networks in the interorganizational context.


External Networking and Internal Firm Governance

External Networking and Internal Firm Governance

Author: Cesare Fracassi

Publisher:

Published: 2015

Total Pages: 50

ISBN-13:

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We use panel data on Samp;P 1500 companies to identify external network connections between directors and CEOs. We find that firms with more powerful CEOs are more likely to appoint directors with ties to the CEO. Using changes in board composition due to director death and retirement for identification, we find that CEO-director ties reduce firm value, particularly in the absence of other governance mechanisms to substitute for board oversight. Moreover, firms with more CEO-director ties engage in more value-destroying acquisitions. Overall, our results suggest that network ties with the CEO weaken the intensity of board monitoring.


The SAGE Handbook of Industrial, Work & Organizational Psychology

The SAGE Handbook of Industrial, Work & Organizational Psychology

Author: Deniz S Ones

Publisher: SAGE

Published: 2017-12-04

Total Pages: 1236

ISBN-13: 1473942845

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The third volume in The SAGE Handbook of Industrial, Organizational and Work Psychology concentrates on business decision-making and the many factors influencing the adoption and implementation of IWO practices. Chapter topics include utility assessments of interventions, decision-making errors in IWO systems, large-scale interventions and best practices reviews. Volume Three offers a comprehensive overview of the field for anyone working in or studying managerial or organizational psychology.


Power and Influence

Power and Influence

Author: Deborah E. de Lange

Publisher: Springer

Published: 2010-12-20

Total Pages: 483

ISBN-13: 0230115543

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This book investigates whether and why social structure influences cooperative organizational strategic decision making in an international relations context. It looks in particular at the United Nations General Assembly (UNGA).


Revitalising Leadership

Revitalising Leadership

Author: Suze Wilson

Publisher: Routledge

Published: 2017-07-20

Total Pages: 222

ISBN-13: 1317418123

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Revitalising leadership connects leadership theory and practice with context. It argues that the universal prescriptions favoured by most leadership scholars ignore the reality that context always matters in leadership practice – and so it should matter in leadership theorizing too. Addressing this gap, the book offers a novel framework that enables the development of context-sensitive leadership theory and practice. This framework directs theoretical and practical attention to the key challenges for leadership in different organizational contexts. It involves developing a specific purpose for leadership in a given context, as well as formulating the values, norms and domains of action which should guide leadership efforts in that context. Determining these various matters then informs the role, responsibilities, rights, behaviours and attributes relevant to leaders and followers for that context, and the focus, purpose and boundaries of the leader-follower relationship. Deploying this framework, six in-depth illustrative theorisations are provided, showing how leadership practice might best take shape in the contexts of supervisory management; HR management; innovation and entrepreneurship; strategy; governance; and leadership studies itself. Revitalising leadership will appeal to diverse audiences, due to its theoretical novelty, its diversity of illustrative examples, its practice-focussed orientation and its clear, engaging style. These include leadership scholars concerned with the lack of attention being paid to context in leadership theorizing; organizational scholars wanting to learn how leadership thinking can be brought to bear on the different management functions the book explores; practitioners seeking leadership ideas that are tailored to the context they lead and follow in; and those involved in MBA or leadership development programmes who are looking to combine the personal reflection sought by such programmes with a thoughtful analysis of the context in which their leadership practice takes place.


The Value Creating Board

The Value Creating Board

Author: Morten Huse

Publisher: Routledge

Published: 2008-11-19

Total Pages: 555

ISBN-13: 1134074174

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This book breaks new ground, offering a major survey on boards of directors throughout various European countries, opening up the hitherto unexamined area of study of board behaviour and the workings of the value creating board.


Advisory Boards in Startups

Advisory Boards in Startups

Author: Eric Weber

Publisher: Springer

Published: 2016-08-25

Total Pages: 252

ISBN-13: 3658153407

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The author shows that advisory boards in technology-based startups have seven different roles and functions: control, advice, networking, signalling, capital provision, co-management, coordination. It is shown that venture capital investors try to influence the importance of these roles in favour of control, coordination and co-management. Contrary to this, the satisfaction of founders as well as advisory board members increases with a higher importance of advice, networking and signalling. This analysis provides both qualitative and quantitative empirical data on the usage of those boards in practice.


Board Directors, Financial Derivatives, and Corporate Governance: The Case of Vietnam

Board Directors, Financial Derivatives, and Corporate Governance: The Case of Vietnam

Author: Tran Thi Hong Lien

Publisher: Springer Nature

Published: 2022-05-09

Total Pages: 245

ISBN-13: 9811914001

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This book gives readers a look inside the boardrooms and directors’ minds—a desirable but highly challenging task for researchers due to the lack of access to top teams in organizations. This book breaks through that barrier with a mixed-methods investigation of boardrooms in the emerging country of Vietnam particularly on the topic of financial derivatives. Directors are the leading players within the corporate governance framework. The general effectiveness of the board depends on their roles, processes and competencies. Given the scandals marring the history of the financial industry, this book aims to tackle the question of whether board directors have the financial acumen required to handle the tricky instruments of financial derivatives through interviews with board directors and analysis of their organizations. Providing a managerial perspective of financial derivatives, this distinguishes itself from more popular financial engineering books and would be a useful read for government officials, board directors, training organizations and scholars, particularly in Vietnam.