Interlocking Directorates Networks and Young Firms’ Performance: Social Capital in the Entrepreneurial Environment
Master thesis

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Date
2018Metadata
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- Master of Science [1822]
Abstract
There is voluminous research on the relationship between interlocking directorates
networks and firm performance. However, empirical studies on this topic remain
inconclusive. One issue identified by scholars is related to the scope of studies, as
interlocking directorates literature has focused exclusively on mature and large
companies. This research contributes by considering firm age as a moderator of the
mentioned relationship. We utilize a seven-year panel dataset of the entire
Professional, Scientific & Technical Activities sector in Norway, examining interindustry
network originating from a census dataset of all registered companies. The
findings indicate that there is a negative moderating effect of firm age on the
interlock-performance relationship. We find that young companies benefit more
from participating in an interlocking directorates network than established firms. In
addition, we consider two types of inter-board connections, ties to young companies
and ties to established companies, in terms of their impact on firm performance. We
find that young firms extract more benefits from both types of connections. As such,
we argue that social capital, through interlocking directorates, can help young
companies to overcome liabilities that are associated with an early organizational
age.
Description
Masteroppgave(MSc) in Master of Science in Business, Strategy - Handelshøyskolen BI, 2018