W11- studies ( interlocking directorate occurs in business board of…
interlocking directorate occurs in business board of directors
How and why do interlocks form?
Interlocks are created by both inside and outside directors.
Inside directors- primary affiliation with the firm and usually include the firm’s CEO and other top officers.
Outside directors- primary affiliation are with organizations other than the focal firm.
It was common for several firms within industries to share directors.
Within industry interlocks continue to occur suggests that some interlocks may restrict competition.
Even ties developed for organizational purposes could have the consequence of facilitating interfirm political unity.
Interlocks reflected both interorganizational and intraclass ties.
Cooptation and monitoring
Cooptation- as the absorption of potentially disruptive elements into an organization’s decision making structure.
Profitability (or lack of profitability) drives interlocks.
Interlocks occurs between organization, but they are created by individuals
Legitimacy may be a prerequisite for securing of resources discussed in the previous section.
Information and Innovation
Between State Power and Familism
(Network from consolidation to prvatization)
Taiwan’s corporate networks do not completely conform to the ‘financial hegemony’ model, in which financial conglomerates make up the core.
liberalization rising, network became less dense over time, but the networks of private company directors became sparser and more rapidly than those of directors of state-owned enterprises.
The state has receded from its dominant position in the network; it is no longer is a crucial player in shaping the network structure
(Japanese colonial period)
Japan selected certain industries due to the policy of improvement the infrastructural (ex: Sugar, textiles)
Some Taiwanese were built on collaborating with the colonial government, allowing them to become part of the colonial elite.
Japan directly invested in selected industries for development and actively lobbying companies based in Japan and Taiwan to invest in those same industries.
familism”to become the most important
Indigenous companies that inherited the profits of the Japanese colonial era.
Emerging indigenous entrepreneurs in the pet- non-chemical and heavy industries.
Companies came from the textile industry
(KMT State involvement)
multiple relations is very high
The market was highly politicized: firms were selected, protected, sponsored and, in many cases, owned by the government.
To restrict institutional environment was the regulation of company law, aimed to promote market stability and economic security.
The institutional environment was heavily regulated by the government.