Research On The Influence Of Interlocking Directors’ Network On Strategic Asset Investment

With the acceleration of the process of global economic integration,domestic enterprises are faced with a complex external environment.They need to cooperate with different organizations,pass information to each other,share resources and jointly deal with the uncertainty of the environment.As the main body of enterprise strategic decision,the board of directors play an important role in strategic investment decision.Major investment decisions of enterprises need a lot of information and resources,and enterprises can obtain certain external information and resources through the interlocking directors’ network to provide support for strategic investment decisions of enterprises.Under the new situation,how to effectively utilize the interlocking directors’ network and then enhance the strategic assets of the enterprise is an important problem facing the enterprise.Combining the resource dependence theory and the theory of social identity theory,the paper examines the interlocking directors’ network relationships with strategic assets investment,and to explore whether factional faultlines affect the relationship.Firstly,this paper has sorted out relevant literature and defined relevant concepts.Secondly,it has carried out theoretical analysis and put forward relevant research hypotheses from the main effect of interlocking directors’ network on strategic asset investment and the moderating effect of factional faultlines on the relationship between them.Thirdly,selected the research data,explained the measurement of variables,and built the econometric model.Finally,this paper empirically verifies the influence of the interlocking directors’ network on strategic asset investment by using the sample data of China’s gem listed companies from 2013 to 2017.The empirical results show that the scale of interlocking directors’ network has no significant effect on the strategic asset investment,and the network centrality and structure hole of interlocking directors’ network are positively correlated with the strategic asset investment.The factional faultlines of the board of directors weakens the positive correlation between the centrality of directors’ network and the structure hole and strategic asset investment.This paper enriches the related researches on interlocking directors’ network,factional faultlines and strategic asset investment,and provides references for enterprises on how to optimize the composition of board members and how to build interlocking director network to promote strategic asset investment.