The Coevolution of Board Interlock Networks and Corporate Strategic Actions

Studies on board interlock networks are divided into two streams, one examining their dynamics; the other, their consequences. We propose that both phenomena – board interlock dynamics and consequences – are interdependent. Adopting a structuration theoretical perspective, we theorize and empirically demonstrate how firms’ corporate strategic actions (specifically, acquisitions and divestitures) influence different types of board interlock network ties and how these interlock ties, in turn, influence the firms’ corporate strategic actions. Integrating the two research streams, we complement corporate governance literature by providing evidence for how corporate strategic actions and certain types of board interlock network ties coevolve. We contribute to theory on strategic networks by applying a structuration theory lens. Lastly, we illustrate methodological advances by using stochastic actor-oriented models to analyze coevolution processes.

Julia Brennecke is Chair for Business Administration, especially Innovation Management, at the University of Potsdam and part time Professor in Innovation Management at the University of Liverpool. Her research centers on the dynamics of networks and collaboration within and between organizations. It aims to create a better understanding of how and why firms and their employees form and adapt network ties and seeks to expose the impact that the resulting networks have for performance and innovation. Her work has been published in journals such as Academy of Management Journal, Journal of Management, and Journal of Management.