Network Cohesion and Social Influence in Organizational Networks

• In Event: 3265 - Social Networks

Abstract

Research on social influence across organizational networks has largely ignored the role of social structure. We extend prior work on inter-organizational social influence through board interlock networks by considering how social influence processes are stronger when nested in structurally cohesive subgroups, characterized by multiple redundant and overlapping ties. Structurally cohesive network topologies ensure that ideas and practices are encountered repeatedly and reinforced, thus enhancing social influence. Drawing on research on structural cohesion in social networks and inter-organizational social influence and diffusion over board interlocks, we show how dyadic social influence processes are more powerful when actors are mutually nested within cohesive networks. We find evidence for cohesion contingent social influence in corporate governance using data on board interlocks among S&P 1500 firms from 1998 to 2014. The results show how network cohesion, and its decline, may have important consequences for the spread of corporate governance approaches in corporate America.

Authors

• Richard Benton, University of Illinois

• Mark S. Mizruchi, University of Michigan