Informal Strategic Networks and the Board of Directors

Abstract

This paper contributes to the understanding of small firms directorates in developing informal strategic networks. These networks are of great importance to small firms, and directorates may play a central role in creating, maintaining, and influencing external contacts of importance to the firm. In a field survey of 104 dual leadership joint stock hotels in Norway and Sweden, associations between board composition, board-management relations, and director incentives, and the boards’ networking involvement have been explored. The study revealed the importance of the directors’ incentives in taking care of the networking functions of contacting and lobbying.

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