Networks, Interlocking Directors and Strategy: Toward a Theoretical Framework

Abstract. Research on inter-organisational networks reflects their acknowledged and growing importance. Strategy research, however, is only beginning to investigate the nature of networks and how network participation can affect organisational performance. Networks embody a relational view of the organisation and their study draws attention to the mechanisms by which relationships are secured and managed. Board of directors interlocks are a principal traditional indicator of network ties, yet little has been written on the role of interlocks in different types of networks and their potential effects on performance. We develop a typology of inter-organisational networks based on the key dimensions of organisational interdependence and network durability; a ‘micro-typology ’ of embedded networks in East Asia based on formalisation of ties and networking scope; suggest that key aspects of directors’ roles differ based on the type of network in which they are engaged; and develop specific propositions for further investigation