Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective

Fabio Zona, Luis Gomez-Mejia, Michael C. Withers

Research output: Contribution to journalArticle

42 Citations (Scopus)

Abstract

This study develops a combined agency–resource dependence perspective and applies it to the study of interlocking directorates. It suggests that interlocking directorates may exert either a positive or a negative effect on subsequent firm performance, depending on the firm’s relative resources, power imbalance, ownership concentration, and CEO ownership. A test on a sample of 145 Italian companies provides support for hypothesized effects. This study suggests that integrating agency and resource dependence theories provides a higher-order explanation of firm performance and helps advance both agency and resource dependence theories.

Original languageEnglish (US)
Pages (from-to)589-618
Number of pages30
JournalJournal of Management
Volume44
Issue number2
DOIs
StatePublished - Feb 1 2018
Externally publishedYes

Fingerprint

Firm performance
Resource dependence theory
Interlock
Interlocking directorates
Resources
Ownership concentration
CEO ownership
Imbalance

Keywords

  • agency theory
  • boards of directors
  • resource dependence

ASJC Scopus subject areas

  • Finance
  • Strategy and Management

Cite this

Board Interlocks and Firm Performance : Toward a Combined Agency–Resource Dependence Perspective. / Zona, Fabio; Gomez-Mejia, Luis; Withers, Michael C.

In: Journal of Management, Vol. 44, No. 2, 01.02.2018, p. 589-618.

Research output: Contribution to journalArticle

@article{8db2b3107e454ec1b9a461b106c24637,
title = "Board Interlocks and Firm Performance: Toward a Combined Agency–Resource Dependence Perspective",
abstract = "This study develops a combined agency–resource dependence perspective and applies it to the study of interlocking directorates. It suggests that interlocking directorates may exert either a positive or a negative effect on subsequent firm performance, depending on the firm’s relative resources, power imbalance, ownership concentration, and CEO ownership. A test on a sample of 145 Italian companies provides support for hypothesized effects. This study suggests that integrating agency and resource dependence theories provides a higher-order explanation of firm performance and helps advance both agency and resource dependence theories.",
keywords = "agency theory, boards of directors, resource dependence",
author = "Fabio Zona and Luis Gomez-Mejia and Withers, {Michael C.}",
year = "2018",
month = "2",
day = "1",
doi = "10.1177/0149206315579512",
language = "English (US)",
volume = "44",
pages = "589--618",
journal = "Journal of Management",
issn = "0149-2063",
publisher = "SAGE Publications Inc.",
number = "2",

}

TY - JOUR

T1 - Board Interlocks and Firm Performance

T2 - Toward a Combined Agency–Resource Dependence Perspective

AU - Zona, Fabio

AU - Gomez-Mejia, Luis

AU - Withers, Michael C.

PY - 2018/2/1

Y1 - 2018/2/1

N2 - This study develops a combined agency–resource dependence perspective and applies it to the study of interlocking directorates. It suggests that interlocking directorates may exert either a positive or a negative effect on subsequent firm performance, depending on the firm’s relative resources, power imbalance, ownership concentration, and CEO ownership. A test on a sample of 145 Italian companies provides support for hypothesized effects. This study suggests that integrating agency and resource dependence theories provides a higher-order explanation of firm performance and helps advance both agency and resource dependence theories.

AB - This study develops a combined agency–resource dependence perspective and applies it to the study of interlocking directorates. It suggests that interlocking directorates may exert either a positive or a negative effect on subsequent firm performance, depending on the firm’s relative resources, power imbalance, ownership concentration, and CEO ownership. A test on a sample of 145 Italian companies provides support for hypothesized effects. This study suggests that integrating agency and resource dependence theories provides a higher-order explanation of firm performance and helps advance both agency and resource dependence theories.

KW - agency theory

KW - boards of directors

KW - resource dependence

UR - http://www.scopus.com/inward/record.url?scp=85040465219&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85040465219&partnerID=8YFLogxK

U2 - 10.1177/0149206315579512

DO - 10.1177/0149206315579512

M3 - Article

AN - SCOPUS:85040465219

VL - 44

SP - 589

EP - 618

JO - Journal of Management

JF - Journal of Management

SN - 0149-2063

IS - 2

ER -