These interlocking directorates
serve many purposes.
A limited rationality model of interlocking directorates
. Academy of Management Review, 9: 206-217.
other firms directly linked to the core sample by interlocking directorates
) and then second-order neighbours (i.e.
Unlike the Clayton Act, the PCA does not contain any specific provision expressly prohibiting interlocking directorates
in competing businesses.
under section 8 of the Clayton Act should be
Stearns, 1988, "A Longitudinal Study of the Formation of Interlocking Directorates
," Administrative Science Quarterly 33, 194-210.
Lester and Cannella's (2006) article, "Interorganizational familiness: How family firms use interlocking directorates
to build community-level social capital," provides a good example of how the personalism of family businesses allow them to make particularistic decisions that may be unavailable to nonfamily firms in solving their unique problems.
Second, these interlocks have integrated the circuits of industrial and money capital to such an extent that they now constitute "finance capital." (59) Third, Canadian finance capital is a "well-integrated and dense network of nationally based interlocking directorates
" (66); that is, it is established by an East-West or pan-Canadian structure of corporate power.
These contacts can be formal alliances, cooperatives, interlocking directorates
, intergovernmental relationships, supplier/customer relationships, and joint ventures or they can be more informal, from chance meetings or relationships based on mutual goals that are not legally binding.