National Networks of Corporate Power: An Irish Perspective
Purchase on Springer.com
$39.95 / €34.95 / £29.95*
Rent the article at a discountRent now
* Final gross prices may vary according to local VAT.
This paper maps the network of interlocking directorships formed by the boards of the top 50 financial and 200 non-financial companies in Ireland. The Irish network is compared with those in ten countries, based on the same sample size and selection criteria as used in this paper, using the methods and theory of Social Network Analysis (SNA). Fundamental to the paper is the idea that the network of interlocking directorates is in some way structured, and not the result of random processes.
Irish boards were found to have a relatively loosely connected network structure which is sparser and less dense than those of other countries. This is reflected in the relatively low percentage of multiple directors and the relatively fewer number of directorships per multiple director.
In general, indigenous Irish public companies tended to be central in the network, while a disproportionately large number of foreign and private companies were isolated on the periphery. However, a number of foreign-owned companies were central to the network -- in particular, those which started as indigenous Irish companies which were subsequently taken over.
When account is taken of the nature of the Irish economy and business, in comparison with that of the ten other countries, it is seen that the opportunities for company interlinking at board level in Ireland are relatively fewer. However, within these constraints, there is a thriving network of corporate power in Ireland.
- Allen, M.P.: 1974, “The Structure of Interorganizational Elite Cooperation: Interlocking Corporate Directorates”, American Sociological Review 39(June): 393–406.
- Bishop, M.: 1994, “The Way Ahead – Corporate Governance will Improve Everywhere but at Different Speeds”, The Economist 330(29 January).
- Boardroom Centre: 1988, The Non-Executive Director: Roles and Responsibilities (Dublin: Boardroom Centre).
- Brennan, N. and J. McCafferty: 1997, “Corporate Governance Practices in Irish Companies”, Irish Business and Administrative Research 18: 114–133.
- Buchanan-Barrow, P.: 1993, “Boardrooms Today: How Do You Measure Up?”, Executive Development 6(3): 8–10.
- Burdett, J.O.: 1991, “How to Build a Business Network”, Executive Development 4(4): 8–9.
- Burke, R.J.: 1994, “Women on Corporate Boards of Directors: Forces for Change?”, Women in Management Review 9(1): 27–31.
- Business & Finance: 1994, “Top 1 000 Companies”, Business & Finance 27 January (Dublin: Belenos Publications Limited).
- Cadbury, Sir A.: 1992, Committee on the Financial Aspects of Corporate Governance (London: Gee Publishing).
- Caswell, J.A.: 1984, “An Institutional Perspective on Corporate Control and the Network of Interlocking Directorates”, Journal of Economic Issues XVIII(2): 619–626.
- Clarke, T.: 1993, “Corporate Governance after Cadbury”, Executive Development 6(3): 28–32.
- Cooke, P.: 1998, “Enterprise Support in Dynamic European Regions”, in Sustaining Competitive Advantage (Dublin: National Economic and Social Council).
- Coulson-Thomas, C.: 1990, “Developing Directors”, European Management Journal 8(4): 488–499.
- Coulson-Thomas, C. and A. Wakelam: 1991, The Effective Board: Current Practice, Myths and Realities (London: Institute of Directors).
- Cowen, S.S. and R.L. Osborne: 1993, “Board of Directors as Strategy”, Journal of General Management 19(2): 1–13.
- Dalton, D.R., C.M. Daily, A.E. Ellstrand and J.L. Johnson: 1998, “Meta-analytic Review of Board Composition, Leadership Structure and Financial Performance”, Strategic Management Journal 10(3): 269–290.
- Davis, G.F.: 1993, “Who Gets Ahead in the Market for Corporate Directors: The Political Economy of Multiple Board Memberships”, Academy of Management Best Papers Proc: 202–206.
- Dun & Bradstreet: 1992, Marketing Guide to Ireland 1991/92 (Dublin: Dun & Bradstreet).
- Faulkner, D.: 1995, International Strategic Alliances: Co-operating to Compete (London: McGraw Hill).
- Ghoshal, S. and C.A. Bartlett: 1997, The Individualised Corporation: A Fundamentally New Approach to Management (New York: Harper Business).
- Greenbury, Sir R.: 1995, Directors' Remuneration: Report of a Study Group Chaired by Sir Richard Greenbury (London: Gee & Co.).
- Gulati, R.: 1998, “Alliances and Networks”, Strategic Management Journal 19(4): 293–317.
- Hallock, K.F.: 1997, “Reciprocally Interlocking Boards of Directors and Executive Compensation”, Journal of Financial and Quantitative Analysis 32(3): 331–344.
- Hampel, R.: 1998, Committee on Corporate Governance Final Report (London: Gee & Co.).
- Hilferding, R.: 1981, Finance Capital (London: Routledge and Kegan Paul) (originally published in German in 1910).
- Howe, E. and S. McRae: 1991, Women on the Board (United Kingdom: Policy Studies Institute).
- Ibarra, H.: 1993, “Personal Networks of Women and Minorities in Management: A Conceptual Framework”, Academy of Management Review 18(1): 56–87.
- Jarillo, J.C.: 1993, Strategic Networks: Creating the Borderless Organisation (Oxford: Butterworth-Heinemann).
- Kennedy, C.: 1993, “Adding Value to the Board” Director (UK) 47(3): 36–40.
- Kenny, I.: 1991, “Boardroom Practice”, Management Decision 29(7): 15–17.
- Knoke, D. and J.H. Kuklinski: 1982, Network Analysis (Beverly Hills, California: Sage Publications).
- Krackhardt, D. and J.R. Hanson: 1993, “Informal Networks: The Company Behind the Chart”, Harvard Business Review July–August: 104–111.
- Leighton, D.S.R. and D.H. Thain: 1993, “Selecting New Directors”, Business Quarterly Summer: 17–25.
- Lorange, P. and J. Roos: 1993, Strategic Alliances: Formation, Implementation, Evolution (Oxford: Blackwell Business).
- Mac Canna, L.: 1994, Networks of Corporate Power (Dublin: University College Dublin MBA thesis).
- MacCormac, M.: 1985, “The Functions of the Board of Directors: A Reassessment”, Journal of Irish Business and Administrative Research 7(1): 90–97.
- Miles, R.E., C.C. Snow and H. Coleman: 1992, “Managing 21st Century Network Organisations”, Organizational Dynamics 20(3): 5–20.
- Mintz, B. and M. Schwartz: 1981, “Interlocking Directorates and Interest Group Formation”, American Sociological Review 46 (December): 851–869.
- Mizruchi, M.S.: 1996, “What do Interlocks Do? An Analysis, Critique and Assessment of Research on Interlocking Directorships”, Annual Review of Sociology 22: 271–298.
- Mizruchi, M.S. and L.B. Stearns: 1988, “A Longitudinal Study of the Formation of Interlocking Directorates”, Administrative Science Quarterly 33: 194–210.
- Norhria, N. and R.G. Eccles (eds.): 1992, Networks and Organisations: Structure, Form, and Action (Boston: Harvard Business School Press).
- O'Higgins, E.: 1992, Non-Executive Directors in the Irish Boardroom: Selection and Characteristics (Dublin: Network).
- O'Neill, J.D.: 1995, The Irish Stock Market Annual (Dublin: Private Research Limited).
- Ornstein, M.: 1984, “Interlocking Directorates in Canada: Intercorporate or Class Alliance?”, Administrative Science Quarterly 29: 210–231.
- Pettigrew, A.M.: 1992, “On Studying Managerial Elites”, Strategic Management Journal 13: 163–182.
- Porter, M.E.: 1990, The Competitive Advantage of Nations (New York: Macmillan).
- Scott, J.: 1985, “Theoretical Framework and Research Design”, in F.N. Stokman, R. Ziegler and J. Scott (eds.), Networks of Corporate Power: A Comparative Analysis of Ten Countries (Cambridge U.K.: Polity Press), pp. 1–19.
- Scott, J.P. and C. Griff: 1984, Directors of Industry. The British Corporate Network 1904 to 1976 (Cambridge, U.K.: Polity Press).
- Stokman, F.N. and F.W. Wasseur: 1985, “National Networks in 1976: A Structural Comparison” in F.N. Stokman, R. Ziegler and J. Scott (eds.), Networks of Corporate Power: A Comparative Analysis of Ten Countries (Cambridge, U.K.: Polity Press), pp. 20–44.
- Stokman, F.N., R. Ziegler and J. Scott: 1985, Networks of Corporate Power: A Comparative Analysis of Ten Countries (Cambridge, U.K.: Polity Press).
- Wageman, R: 1997, “Critical Success Factors for Creating Superb Self-Managing Teams”, Organizational Dynamics 26(1): 49–61.
- Wasserman, S. and K. Faust: 1994, Social Network Analysis: Methods and Applications (New York: Cambridge University Press).
- Westphal, J.D. and E.J. Zajac: 1997, “Defections from the Inner Circle: Social Exchange, Reciprocity and the Diffusion of Board Independence in US Corporations”, Administrative Science Quarterly 42(1): 161–183.
- National Networks of Corporate Power: An Irish Perspective
Journal of Management and Governance
Volume 2, Issue 4 , pp 357-379
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Industry Sectors