Author
Martin, G., Gözübüyük, Remzi, Becerra, M.
Publication Date
2015-02
Publication Place
-
Wiley
Subject
Directorate interlock, Performance, Uncertainty, Networks, Resource dependence
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1097-0266
Record ID
075e6bbb-1d0d-476c-ae9f-f0e796d143aa
Library Location
Business Administration
Date
2015-02
Notes
Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Sample Text
We examine how uncertainty influences the performance effects of directorate interlocks. Our study offers a new perspective of directorate interlocks as mechanisms that enable firms to improve performance when confronted with greater uncertainty, suggesting that uncertainty positively moderates the interlock-performance relationship. This contrasts with the view based on resource dependence theory suggesting networks reduce uncertainty and enhance firm performance, implying that uncertainty mediates the interlock effect upon performance. Using a sample of 3,745 firms across manufacturing industries in the United States during the period 2001–2009, we find support for the moderation argument and less convincing support for mediation, suggesting that firms may not form interlocks necessarily to reduce uncertainty. Instead, firms may create interlocks to enable adaptation and enhance performance when confronted by uncertainty.
DOI
10.1002/smj.2216
