engleski

The role of top management's social networks in corporate governance of (post)transition societies

In this paper we will investigate the role and usage of top management social networks in the context of developing corporate governance practices in post-transitional economies such as the Croatian. Croatian economy is characterized with a closed system of corporate governance and with a high stake of state ownership of publicly listed companies. Taking into consideration the circumstances of such an environment, top managers use their social networks towards different stakeholding groups in order to fulfill their goals, depending on who owns the corporate control. In the paper, we will give an overview of the different strategies managers take advantage of to sustain their positions, by mobilizing their social networks. Also, we will propose a set of strategies the managers use to sustain or advance the company’s position, by using their social network, with an emphasis on the benefits of board interlocks. Board interlocks have proven to be of significant value to corporate governance of companies in the developed economies, but their significance hasn’t been researched abundantly in transitional economies. Thus, the paper will give an overview of the literature on corporate interlocks, board interlocks and offer propositions that future research should test for in order to offer new insights on the question of the role of managerial social networks in corporate governance of post-transition societies.

managerial social network; corporate governance; board interlocks; (post)transition societies

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