A Dynamic Study of Change in a Regional Corporate Network

Abstract

We adapt a class of new stochastic models for social networks to the study of social change in corporate interlock networks. Data on a regional (Minnesota) network are used to verify several descriptive hypotheses drawn from the existing literature concerning interlocking directorates. We conclude that corporations are more likely to make reciprocal board linkages asymmetric than they are to reciprocate asymmetric ties, popular firms are just as likely as less popular firms to be recruited to new boards, popular firms are more likely than less popular firms to leave boards, and nonfinancial business organizations are more likely to form new board ties with commercial banks and insurance companies than with other nonfinancial firms.