Decline of the Corporate Community: Network Dynamics of the by Eelke M. Heemskerk

By Eelke M. Heemskerk

Characteristically, a lot of huge company within the industrialized Western international has been geared up round specific company societies—notoriously often called “old boy” networks. With the hot go with the flow towards a extra liberal marketplace financial system, besides the fact that, those networks were exhibiting symptoms of decline—in a few circumstances, all yet disappearing. Eelke M. Heemskerk combines formal community research and interviews with key participants of the company elite with the intention to learn how this decline has affected Dutch capitalism. Even in a liberal marketplace economic system, although, company administrators desire social networks to speak and coordinate their strategic judgements, and Decline of the company group considers the shift of the company elite to the hot deepest and casual circles the place networking happens.

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Sample text

During the hearings of the parliamentary committee, board members of Dutch construction firms declared that, for them, it seemed impossible to disregard secret price agreements. They would be out of business soon if they chose not to attend the collusive meetings. This showed how deeply the practice of coordination is rooted in some parts of the Dutch economy. The legal framework entails a common normative framework on how an economy should be organised, and reflects the power balance between stakeholders in a corporation.

After that, the history and background of the Dutch corporate regime is discussed, with particular focus on its legal and social origins. This is followed by a similar section that deals specifically with governance of the financial sector. Finally, the peculiar relationship between ownership and control in the Netherlands is discussed, as it plays such an important role in the thinking on corporate governance. These four sections serve as background information for the analysis of the inter-firm network of board interlocks which the remainder of the chapter deals with.

68). 1. Corporate elite networks can be seen as the structural component of the social capital of the corporate elite. Studies that were inspired by themes of power and influence often considered the interpersonal network of directors to be a sign of class cohesion. The interpersonal network of the corporate elite is an opportunity structure its members can use in order to, in the words of Bourdieu (1986), effectively mobilise resources. These resources can be information, money, trust and support.

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