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Marketing Department Power and Board Interlocks
- Publication Year :
- 2019
- Publisher :
- HAL CCSD, 2019.
-
Abstract
- Although the level of power held by the marketing department can determine key organizational outcomes, including firm performance, this power often is modest and, in many firms, diminishing. To address this apparent disconnect, the authors propose that the board of directors is a critical but overlooked driver of marketing department power. In particular, directors’ marketing exposure through board service at other firms (i.e., board-interlocked firms) may affect the marketing department’s power in the firms on whose boards they also serve. With a sample of 4,422 firms, spanning 2007–2013, this study reveals that marketing department power in board-interlocked firms significantly and positively drives marketing department power in the focal firms. Consistent with an information sharing view, the magnitude of this effect varies with the focal firm’s network position in the board-interlocked network, such that it strengthens as the focal firm’s network centrality (information amount) and network brokerage (information quality) increase. These robust results suggest that board members and their social networks significantly influence marketing department power; if marketing wants to increase its power, it should get the board “on board.”
- Subjects :
- History
social networks
Polymers and Plastics
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JEL: L - Industrial Organization/L.L1 - Market Structure, Firm Strategy, and Market Performance/L.L1.L14 - Transactional Relationships • Contracts and Reputation • Networks
endogeneity
Industrial and Manufacturing Engineering
board interlocks
Power (social and political)
JEL: M - Business Administration and Business Economics • Marketing • Accounting • Personnel Economics/M.M3 - Marketing and Advertising/M.M3.M31 - Marketing
Endogeneity
Business and International Management
Marketing
marketing department power
media_common
JEL: M - Business Administration and Business Economics • Marketing • Accounting • Personnel Economics/M.M3 - Marketing and Advertising/M.M3.M30 - General
JEL: C - Mathematical and Quantitative Methods/C.C2 - Single Equation Models • Single Variables/C.C2.C23 - Panel Data Models • Spatio-temporal Models
Information sharing
JEL: M - Business Administration and Business Economics • Marketing • Accounting • Personnel Economics/M.M1 - Business Administration/M.M1.M14 - Corporate Culture • Diversity • Social Responsibility
Information quality
Influencer marketing
Service (economics)
Position (finance)
[SHS.GESTION]Humanities and Social Sciences/Business administration
Business
Centrality
JEL: C - Mathematical and Quantitative Methods/C.C2 - Single Equation Models • Single Variables/C.C2.C26 - Instrumental Variables (IV) Estimation
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.doi.dedup.....25d7001eb7bf47a8f36b2070b37565ab