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Defining the Social Capital of the Board of Directors: An Exploratory Study

Published online by Cambridge University Press:  18 September 2015

Gavin J. Nicholson ,
Malcolm Alexander  and
Geoffrey C. Kiel
Gavin J. Nicholson
Affiliation:
School of Business, University of Queensland Brisbane, Australia Phone:+61 7 3510 8111, Fax: +61 7 3510 8181, Email: [email protected]
Malcolm Alexander
Affiliation:
School of Humanities, Griffith University, Brisbane, Australia Phone: +61 7 3875 7169, Fax: +61 7 3875 7730, Email: [email protected]
Geoffrey C. Kiel
Affiliation:
School of Business, University of Queensland, Brisbane, Australia Phone: +61 7 3365 6758, Fax: +61 7 3365 6988, Email: [email protected]
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Abstract

This paper advances the resource dependence and social networks literature by investigating a board's structural social capital created as a consequence of interlocking directorates. Using approaches and measures developed by social network analysis we compare the interpersonal directorship networks of the top 250 companies in the United States and Australia. We find that the smaller, sparser Australian network is only marginally less compact and connected than the larger US network at the firm level of analysis. However, at the director level of analysis the US network is much larger and more connected than its Australian counterpart. As a result, we argue that scholars studying the resource dependence role of boards should consider using measures of interpersonal links as well as traditional measures of inter-firm links.

Type
Research Article
Information
Journal of Management & Organization , Volume 10 , Issue 1 , January 2004 , pp. 54 - 72
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2004

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