Winning virtuous strategy creation by interlocking interconnecting directors in boards of directors in firms in information century

Dimitri Ledenyov and Viktor Ledenyov

MPRA Paper from University Library of Munich, Germany

Abstract: The article presents an original research on 1) the information theory of the board of directors and 2) the strategy creation by the interlocking interconnecting directors in the boards of directors in the firms in an information century. We review the possible structures of the board of directors, and show that there are the interlocking directors networks in the boards of directors in a big number of firms. Researching the strategic governance of firms, we highlight a fact that the director makes the information sensing, filtering, processing, resonant absorption, analysis, decision making, hence it can be empirically represented as a digital signal processor with the Harvard or von Neumann director’s mindset architectures. We think that the board of directors can be theoretically represented as the electronically-scanned electronically-steered phased array radar with a certain number of active antenna elements, filters banks, digital signal processors, memory chipsets in agreement with the digital signal processing and business administration sciences. Using the theoretical assumptions, we formulate the Ledenyov theory on the winning virtuous strategies creation by the interlocking interconnecting directors in the boards of directors in the firms. We suggest that 1) the transmitted information data-stream measurements, 2) the information bit error rate measurements have to be used to accurately characterize the interlocking interlinking interconnecting directors networks in addition to the well known parameters such as the director’s boards seats accumulation number, centrality, Freeman degree, Betweenness. We believe that the positive and negative feedback loops can quite possibly lead to the destructive coordination among the directors by eliminating the randomness element and by introducing the greater uniformity in the pursuing business strategies. We developed the MicroID software program to compute the probability number of the additional directorship mandates issues.

Keywords: theory of firm; firm valuation; firm strategy creation; board of directors composition; interlocking directors networks; boards seats accumulation number; centrality; Freeman degree; Betweenness; information flows measurements; destructive coordination; microeconomics; Harvard/von Neumann director’s mindset architectures; digital signal processing; electromagnetic signals absorption; chemical elements absorption; information absorption (search for similar items in EconPapers)
JEL-codes: G30 G34 M1 (search for similar items in EconPapers)
Date: 2015-01-22
New Economics Papers: this item is included in nep-cse
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/61681/9/MPRA_paper_61681.pdf revised version (application/pdf)

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