Small business need-to-know and news-to-watch — takeaways of-interest.
Excerpt: Throughout the 20th century, the American board interlock network—in which companies are linked by shared board directors—exhibited a stable cohesiveness, characterized by short path lengths between companies and the existence of an “inner circle” of well-connected directors. This enduring cohesiveness of the interlock network was both the result of elite social cohesion and a key mechanism for maintaining this elite cohesion (e.g., Mills, 1956; Useem, 1984). The characteristics of the interlock network were so stable that Davis, Yoo, and Baker (2003) asserted that short path lengths and an inner circle were inevitable properties of “networks qua networks”.
However, I find that during the first decade of the 21st century, this hitherto rock-like stability crumbled:
Read full article via The End of the Era of the Corporate Interlock Network — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
