The Performance Impact Of Interlocking Directorates: The Case Of Singapore

摘要

The aim of this article is twofold: (1) to understand the reasons for the prevalence of board interlocks in an Asian emerging economy and (2) to test the impact of interlocking directorates on firm performance. The results indicated that board interlocks were formed mainly within a firm's organizational field (i.e., organizations with which the firm does business). A positive and significant relationship between inter-industry interlocks and firm performance was found, implying that such interlocks are a tool for resource acquisition, supporting Pfeffer and Salancik's (1978) theory of resource dependence as it is applied to board interlocks.