Search Results (19)

In the field of firms’ technological innovation, a large body of research has emphasized the roles of interlocking directors and the associated board networks in which they are embedded. By integrating the process perspective of absorptive capacity theory with stakeholder network theory, this study investigates the influence of board networks on firms’ technological innovation output, with particular attention given to the moderating effects of shareholder networks and CEO networks. The theoretical hypotheses suggest that degree centrality within board networks positively influences firms’ technological innovation output, and that this positive effect is weakened by degree centrality within both shareholder networks and CEO networks. While board networks facilitate information acquisition for technological innovation, shareholder networks and CEO networks may serve as substitutes. Furthermore, they may shape the motivations of shareholders and CEOs, potentially hindering the exploitation of information acquired through board networks. Using longitudinal data on Chinese A-share listed companies from 2005 to 2023, we construct three distinct types of interorganizational networks and annually measure firms’ degree centralities within each network type. Employing fixed-effects panel models, this study empirically verifies the proposed hypotheses. Practically, the findings offer important implications for firms seeking to align interorganizational networks with their technological innovation management strategies. We recommend that future research further explore the roles of diverse stakeholder networks in interorganizational contexts to enhance the understanding of how interactions across multilayer networks affect firms’ technological innovation output. Full article

From the perspective of the interlocking directorate network, investigating the impact of digital transformation network peer groups on corporate carbon neutrality performance holds substantial significance for enterprises in accomplishing green and low-carbon transformation within the digital economy framework. Using Shanghai and Shenzhen A-share listed companies from 2018 to 2023 as research samples, this study empirically explores the existence of a digital transformation peer effect within the interlocking directorate network and its influence on corporate carbon neutrality performance, as well as the moderating effect of the supply chain concentration. The results indicate the following: (1) A digital transformation peer effect exists within the interlocking directorate network and significantly improves the carbon neutrality performance of enterprises. (2) The aforementioned positive effect is more pronounced under lower supply chain concentrations. (3) The green innovation level of enterprises serves as an intermediary factor between the digital transformation network peer group and the carbon neutrality performance of enterprises. (4) In regions characterized by stringent environmental regulations, capital-intensive industries, and large-scale enterprises, the digital transformation network peer group exerts a more significant impact on the enhancement of carbon neutrality performance. These results offer a reference for facilitating the formation of digital transformation network peer groups, improving corporate carbon neutrality performance, and consequently attaining sustainable development. Full article

In the midst of sweeping economic transformation, owing to the increasing strategic importance of environmental issues, directors’ green experience is crucial for green innovation. This paper proposes the concept of interlocking directors’ green experience richness (IDGER), considering both the number of directors with green experience and their green linkage strength from the director network. This paper conducts theoretical exploration and empirical research on the impact of IDGER on the companies’ green innovation efficiency. The findings reveal (1) IDGER significantly enhances the green innovation efficiency of Chinese listed companies, and the result is also validated through robustness tests. This study expands the antecedents of green innovation from a board governance perspective. (2) IDGER can enhance green innovation efficiency by increasing executive environmental attention, reducing managerial myopia, and alleviating financing constraints. (3) Media attention can positively moderate the relationship between IDGER and company green innovation efficiency. This expands the understanding of the role of directors’ green experience in corporate green innovation and provides new ideas for emerging market companies on how to promote green innovation by optimizing the composition of their board of directors for achieving sustainable development goals. Full article

The twist-bend nematic liquid crystal phase is a three-dimensional fluid in which achiral bent molecules spontaneously form an orientationally ordered, macroscopically chiral, heliconical winding of a ten nanometer-scale pitch in the absence of positional ordering. Here, the structure of the twist-bend phase of the bent dimer CB7CB and its mixtures with 5CB is characterized, revealing a hidden invariance of the self-assembly of the twist-bend structure of CB7CB, such that over a wide range of concentrations and temperatures, the helix pitch and cone angle change as if the ground state for a pitch of the TB helix is an inextensible heliconical ribbon along the contour formed by following the local molecular long axis (the director). Remarkably, the distance along the length for a single turn of this helix is given by 2πR_mol, where R_mol is the radius of bend curvature of a single all-trans CB7CB molecule. This relationship emerges from frustrated steric packing due to the bent molecular shape: space in the fluid that is hard to fill attracts the most flexible molecular subcomponents, a theme of nanosegregation that generates self-assembled, oligomer-like correlations of interlocking bent molecules in the form of a brickwork-like tiling of pairs of molecular strands into duplex double-helical chains. At higher temperatures in the twist-bend phase, the cone angle is small, the director contour is nearly along the helix axis z, and the duplex chains are sequences of biaxial elements formed by overlapping half-molecule pairs, with an approximately 45° rotation of the biaxis between each such element along the chain. Full article

In an era focused on deepening green sustainable development, improving corporate ESG performance has become a theoretical focal point. Starting from the positional attributes of the interlocking director network, this study investigates the influence of a company’s position within this network on its ESG performance among China’s A-share-listed companies from 2009 to 2022. It utilizes Huazheng ESG ratings from the Wind database and employs regression models, analyses, endogeneity, and propensity score matching tests via Stata15.0 to probe the internal mechanisms at play. Research findings indicate that corporations at the core of the interlocking director network exhibit significantly better ESG performance compared to those in peripheral positions. The interlocking director network enhances corporate ESG performance by improving internal control levels. Media attention positively influences the effect of the interlocking director network on corporate ESG performance. Further analysis reveals that the beneficial impact of the interlocking director network on ESG performance is more pronounced in highly marketized corporations, those outside of heavy pollution industries, and those with a higher proportion of female directors. Economically, the positive effect of the interlocking director network on ESG performance enhances both earnings per share and total factor productivity. This study offers a novel pathway for enhancing corporate sustainability in emerging economies through the lens of the interlocking director network, drawing on China’s experience. It aims to guide emerging markets in fostering ESG practices among corporations, thus offering theoretical insights for enhancing ESG performance. Full article

Traditional resistance spot welding (RSW) has been unsuccessful in forming quality composite joints between steel– or aluminum–polymer-based composites. This has led to the development of spot welding variants such as friction stir spot welding (FFSW), ultrasonic spot welding (USW), and laser spot welding (LSW). The paper reviewed the differences in the bonding mechanisms, spot weld characteristics, and challenges involved in using these spot welding variants. Variants of RSW use series electrode arrangement, co-axial electrodes, metallic inserts, interlayers, or external energy to produce composite joints. FFSW and USW use nanoparticles, interlayers, or energy directors to create composite spot welds. Mechanical interlocking is the common composite joint mechanism for all variants. Each spot welding variant has different sets of weld parameters and distinct spot weld morphologies. FFSW is the most expensive variant but is commonly used for composite spot weld joints. USW has a shorter welding cycle compared to RSW and FFSW but can only be used for small components. LSW is faster than the other variants, but limited work was found on its use in composite spot weld joining. The use of interlayers in FFSW and USW to form composite joints is a potential research area recommended in this review. Full article

Green innovation is a potent driver of sustainability. Drawing on social network theory, this paper used data from Chinese listed companies from 2010 to 2020 as a sample and found that independent directors’ interlocking network position significantly enhanced corporate green innovation. Additionally, digital transformation positively moderated this impact, while environmental regulations exhibited a U-shaped influence on this relationship. Further analysis revealed that independent directors’ interlocking network position can enhance green innovation through leveraging information, resource advantages, and environmental responsibilities. The network position of companies with lower pollution levels and diligent independent directors notably amplified green innovation. This study clarifies the boundary conditions and mechanisms of corporate green innovation, offering new ideas and evidence for sustainability. Full article

Director interlocks occur when a board member or an executive of a firm sits on the board of directors of another firm. As an essential social network application in the business world, interlocking directorates are documented to be non-trivial from the 1930s and continue to gain popularity thereafter. Corporate information and business practices can be transferred to another firm through an interlocking director sitting on both companies’ boards. Such information dissemination leads to changes in an interlocking firm’s decision-making processes. Existing business research attempts to decipher the underlying reasons why board interlocks become prevalent, how and what information is being transferred through this channel, and the intended or unintended consequences to firm strategic, governance, financing, and accounting practices. We first introduce theoretical research on board interlocks in management and then follow up with empirical evidence in finance and accounting. Since extant studies have not reached a consensus on various consequences of board interlocks, we contribute to the literature by summarizing the findings from multi-business disciplines, discussing their advantages and disadvantages, and calling for more research on the topic. Full article

We provide a comprehensive study of how different corporate governance mechanisms influence corporate innovation. Using panel data regression analysis across a sample of more than 13,600 firm-years for firms based in the United States between 1996–2010, we find that entrenched boards, though commonly associated with lower firm value, actually generate substantial innovation. We find that busy boards hinder innovation unless they also have interlocking relationships. Conversely, interlocked directors enhance innovation, unless they are busy. Directors who are CEOs or Board Chairs at other companies hinder innovation. Interestingly, despite being significant determinants of firm value in other studies, director experience, independence and ownership are not related to innovation. In order to be innovative, firms should appoint directors to leverage their professional relationships and directors must have a long-term perspective. Full article

Rockfill dams are hydraulic structures of major importance. They can be exposed to extreme flood events, in turn leading to overtopping. These phenomena erode and affect structural and geotechnical integrity, which in turn can cause dam breach. Ripraps are broadly used for rockfill dam protection against such erosion processes. For steep slopes, as the one considered in this study (S = 1:1.5, vertical: horizontal), understanding the riprap behavior during overtopping is an important issue to improve dam design and reinforcement techniques. In this work, datasets are obtained from five experimental models of placed riprap built on a rock filter layer in a flume, at the hydraulic laboratory of the Norwegian University of Science and Technology, Trondheim. The riprap stones were placed in an interlocking pattern with a metallic support at the toe. The models were subjected to successive and incremental overtopping discharges until their complete failure. A laser traverse system was used to measure the coordinates (3D) of individual marked riprap stones between each discharge increase. Six load cells located at the toe measured the imposed loads during the entire procedure. From the total load values, two different types of load contributions could be distinguished: the self-weight of the stones and the hydraulic load depending on the discharge level of the overflow. This article highlights the strong relation in each of the five tests between riprap stone displacements, axial reaction load values measured at the toe and overtopping discharges. Moreover, as demonstrated in previous works, a buckling deformation of the riprap layer was observed and described. The results demonstrate that as the hydraulic load induces 2D deformations of the riprap, a larger part of the riprap weight is supported at the toe. Thus, the measured axial load during overtopping arises both from the hydraulic load and from the load imparted due to the compaction of the riprap layer. This compaction effect induces an even greater load than the one imposed due to the hydraulic contribution. The results from this study are finally put into perspective with the Norwegian Water Resources and Energy Directorate recommendations for full scale dams and suggest the great resistance of supported riprap at the toe. Full article

The purpose of the study is to examine the sustainability of the tax aggressiveness of shared directors from coercive isomorphism and whether social networks of directors have an impact on their tax aggressiveness. Specifically, the study intends to examine how tax knowledge diffuses across firms and how this knowledge diffusion affects connected firms. To test the constructed hypothesis, the panel logistic regression model is estimated using a firm-level panel dataset for the US and Pakistan to analyze cross-country differences, as the USA holds more legislation and effective governance mechanisms. The study covers the period of 2007–2019. The data required for the empirical analysis was collected from the Thompson Reuters database. The results of panel logistic regression show a significant relationship between tax aggressiveness and director’s connections, suggesting that information diffuses by board interlocks. Specifically, the estimates suggest that there is a positive and significant influence of connected directors on the probability that the tax aggressiveness spreads through coercive isomorphism, inferring that the sustainability of the tax aggressiveness of shared directors from coercive isomorphism is strong. Findings reveal that Pakistani firms, when compared to the USA, are more likely involved in tax aggression because of fewer legislations and tax reforms. The results also reveal that coercive isomorphism significantly mediates the relationship between board interlocks and tax aggressiveness. These findings provide valuable insights into detecting the tax aggressiveness of firms and the channels through which this spread. The study contributes to the scarce research on the impact of board interlocks on tax aggressiveness and the influence of coercive isomorphism on these impacts. This study can help tax authorities in identifying tax-saving strategies through connected directors. Secondly, this study provides empirical evidence to support the diffusion of information regarding tax aggression and provides mechanisms with which to detect tax aggression. Third, our choice of empirical context also helps us contribute to the management practice of firms. CEOs and boards should be wary of interlocks with organizations, lest they inadvertently become reticent and hence prove to be of no good. Full article

The purpose of this study was to examine how family involvement affects the environmental innovation of firms. While prior studies have shown that family involvement can enhance environmental performance, these environmental performances have been portrayed as firm activities to prevent environmental issues, such as air pollution, CO₂ emissions, etc. We maintain that environmental performance should be more proactive and enable firms to transform their activities more fundamentally towards environmental protection. In this sense, we consider environmental innovation, i.e., technological development to address environmental issues, as a proactive measure enacting firm activities to address environmental issues. Furthermore, we determine whether and how family involvement can motivate firms to develop technologies for environmental performance. To illuminate this relation, we utilized a socioemotional wealth perspective, which provides useful insights into how family-controlled firms behave differently in comparison to non-family firms. Building on this socioemotional wealth approach, we suggest that family involvement helps firms engage in environmental innovation. In this study, we also explore how the positive link between family involvement and environmental innovation is dependent on family interlocks—the circumstance wherein a firm’s family directors are affiliated with the boards of directors of other firms. Specifically, we suggest that an increase in a firm’s family interlocks would strengthen the positive relationship between family involvement and environmental innovation. To test our ideas, we used a sample of 623 US public firms ranging from 1996 to 2010, which yielded 5047 firm-year observations. We find that family involvement facilitates the environmental innovation of firms. We also find that family interlocks intensify the positive effect of family involvement on environmental innovation. Finally, we discuss the theoretical and empirical implications of our results. Full article

The board of directors plays an important role in implementing corporate governance in the firm, as directors have a fiduciary duty to the firm’s shareholders. The effectiveness of directors is a key determinant of corporate value and they need to bring a range of skills and experience to the boardroom. This skill and experience cannot be developed solely within the firm, and most boards incorporate non-executive directors who are or have been directors of other firms. Current research on the benefits of interlocking directorships is mixed between the claim that they bring outside feedback to the table and open decision makers’ minds, and those who think outside directors are a waste of money and can reduce company performance. This paper investigates the extent of interlocking directorship in New Zealand and how it affects corporate performance. Our findings of largely no significant impact on firm performance are consistent with the management control theory of director interlocks; the exceptions support the class hegemony theory that links interlocking directorship with a negative firm performance. Full article

Firms are facing pressure to convincingly communicate to stakeholders their environment, society, and corporate governance (ESG) disclosure. In developing countries, where frictions among controlling and non-controlling shareholders are pervasive, the possible dissensus inside boards regarding ESG disclosure remains understudied. We investigate the ways in which boards’ heterogeneity between the interests of controlling groups and the interests of institutional investors influences ESG disclosure of firms in the Latin American context. Using social networks and logit panel data models, we analyze for 2015-17 the probability of ESG disclosure by 124 Chilean listed firms. Our evidence suggests that the influence of controlling shareholders through directorate interlocking has a negative relation with ESG disclosure. Additionally, we observe that the influence of institutional investors on ESG disclosure is not yet critical. Moreover, we find partial evidence of the presence of tension within the boards regarding ESG reporting between the directors that represent controlling shareholders and institutional investors. Considering the importance of institutional investors and the ubiquity directorate interlocking among Latin American’ firms, our results are relevant for regulators involved in advancing the rules of ESG disclosure practices, institutional investors focused on enhancing their ESG investment strategies, and firms engaged in improving the ESG decision-making within their boards. Full article

In this paper, we first build a multi-theoretical framework through which we hypothesise that the governance mechanisms of a board of directors, on the one hand, and the ownership structures of family and nonfamily firms, on the other, can have an impact on corporate environmental performances. We then test this hypothesis against a sample of 83 Italian listed firms, noting the characteristics of their governance and ownership structures over the five years from 2013 to 2017. We also take note of data from the firms’ Sustainability Reports on emissions of greenhouse gases over the 2014–2018 five-year period. The results we obtain support the prediction, made in line with the Agency-Theory perspective, that there is a positive relationship between board independence and the adoption of environmentally responsible practices. Only partial support emerges for the hypotheses, made in line with the Resource Dependence Theory, according to which better corporate environmental performances can be obtained by increasing the resource provision of board members. In particular, we discover a positive effect of a large-size board on corporate environmental performances, but no significant effect arising from the presence of interlocked board members. Finally, our study provides support for the theoretically-based hypothesis according to which the non-economic utility (socioemotional wealth) of family ownership makes family firms likely to have better environmental performances than non-family firms. Full article