Do Interlocks Lead to the Convergence of Interfirm Innovation Performance? Evidence From China

Ying Teng, Eli Gimmon and Wentong Lu

SAGE Open, 2021, vol. 11, issue 2, 21582440211007132

Abstract: We examine how interlocking directorates influence innovation performance differentials between firms. Our study offers a new perspective of the effect of interlocking directorate ties upon innovation performance, focusing on network effects on interfirm performance. Using a sample of China’s listed companies for the period 2012–2016, we empirically examined the relationship between board interlocks and interfirm innovation performance differentials. The results demonstrate that the presence of board interlocks reduces interfirm innovation performance differentials and leads to a convergence of innovation performance between the connected companies. Furthermore, cross-level analysis found that the relationship between board interlocks and interfirm innovation performance differentials is moderated by the interfirm industry attributes and demographic characteristics of the board. This study expands the existing research in explaining the driving mechanism of enterprise innovation performance as affected by interlocking directorate ties.

Keywords: interlocking directorates; interfirm innovation; performance differentials; cross-level; China (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440211007132 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:11:y:2021:i:2:p:21582440211007132

DOI: 10.1177/21582440211007132

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().