Research question/issue:This study examines whether geographic proximity produces a proximity preference as interlocking firms observe each other and learn innovative behaviors through information transmission among i...Research question/issue:This study examines whether geographic proximity produces a proximity preference as interlocking firms observe each other and learn innovative behaviors through information transmission among interlocking directors.Research findings/insights:We study the performance of A-share-listed companies in China from 2007 to 2017 on the basis of resource dependence theory,agglomeration effect theory,and Porter’s competitive theory.When target firms learn about research and development–related innovation behaviors from interlocking firms closer to them,they experience more efficient learning effects and have improved convergent traits.Moreover,this proximity advantage increases the willingness of the target firm to communicate with and learn from interlocking firms closer to them.Highly developed areas and research and development–intensive industries positively affect the learning efficiency of interlocking firms.Theoretical/academic implications:Our conclusion is consistent with resource dependence theory;target firms in highly developed areas are more willing to imitate and study nearby interlocking firms to maintain their peer relations,innovation potential,and competitiveness.Our conclusion is also consistent with competition theory,which states that the exchange of information between target firms in highly research and development–intensive industries and distant interlocking firms increases innovation differentiation,innovation potential,and competitiveness,even when such exchange has a high cost.Practitioner/policy implications:The results support resource dependence theory and peers’effects.The information obtained by interlocking directorates through external social relations guides firm decision-making,and closer distances reveal more obvious effects.展开更多
Interlocking directors,those serving simultaneously on two or more corporate boards,facilitate exchanges of expertise and knowledge between companies,helping to reduce information gaps related to internationalization....Interlocking directors,those serving simultaneously on two or more corporate boards,facilitate exchanges of expertise and knowledge between companies,helping to reduce information gaps related to internationalization.This study analyzed investment data of 4,403 listed Chinese companies across 80 countries from 2000 to 2021,and identified a significant peer effect:the outward foreign direct investment(OFDI)experience of interlocking board directors strongly influenced companies'decisions to engage in OFDI in the same country.Key mechanisms affecting OFDI decisions include the focal company's cost of debt and the scope of available information.Heterogeneity analysis shows that peer effects were more pronounced in non-state-owned enterprises,companies with lower financing constraints,and those in more competitive industries.These effects were amplified in host countries with higher levels of government integrity and more favorable business environments.This research identifies the key drivers of OFDI and highlights the influential role of interlocking directors in shaping investment strategies,offering theoretical insights for emerging market companies seeking to leverage such networks.展开更多
基金funded by the NSFC number(71903199)NSSFC number(19ZDA061,19AJY027)Financial support from the Innovation and Talent Base for Digital Technology and Finance(B21038).
文摘Research question/issue:This study examines whether geographic proximity produces a proximity preference as interlocking firms observe each other and learn innovative behaviors through information transmission among interlocking directors.Research findings/insights:We study the performance of A-share-listed companies in China from 2007 to 2017 on the basis of resource dependence theory,agglomeration effect theory,and Porter’s competitive theory.When target firms learn about research and development–related innovation behaviors from interlocking firms closer to them,they experience more efficient learning effects and have improved convergent traits.Moreover,this proximity advantage increases the willingness of the target firm to communicate with and learn from interlocking firms closer to them.Highly developed areas and research and development–intensive industries positively affect the learning efficiency of interlocking firms.Theoretical/academic implications:Our conclusion is consistent with resource dependence theory;target firms in highly developed areas are more willing to imitate and study nearby interlocking firms to maintain their peer relations,innovation potential,and competitiveness.Our conclusion is also consistent with competition theory,which states that the exchange of information between target firms in highly research and development–intensive industries and distant interlocking firms increases innovation differentiation,innovation potential,and competitiveness,even when such exchange has a high cost.Practitioner/policy implications:The results support resource dependence theory and peers’effects.The information obtained by interlocking directorates through external social relations guides firm decision-making,and closer distances reveal more obvious effects.
基金support from the Science and Technology Department of Sichuan Province(No.2021JDR0075).
文摘Interlocking directors,those serving simultaneously on two or more corporate boards,facilitate exchanges of expertise and knowledge between companies,helping to reduce information gaps related to internationalization.This study analyzed investment data of 4,403 listed Chinese companies across 80 countries from 2000 to 2021,and identified a significant peer effect:the outward foreign direct investment(OFDI)experience of interlocking board directors strongly influenced companies'decisions to engage in OFDI in the same country.Key mechanisms affecting OFDI decisions include the focal company's cost of debt and the scope of available information.Heterogeneity analysis shows that peer effects were more pronounced in non-state-owned enterprises,companies with lower financing constraints,and those in more competitive industries.These effects were amplified in host countries with higher levels of government integrity and more favorable business environments.This research identifies the key drivers of OFDI and highlights the influential role of interlocking directors in shaping investment strategies,offering theoretical insights for emerging market companies seeking to leverage such networks.
