SOCIAL NETWORKS OF THE BOARD MEMBERS AND ACQUISITION OF RESOURCES BY THE FIRM: A CASE STUDY

Abstract

This research focuses on the reasons behind the constitution of the board of directors. We start with two theoretical positions: the social capital theory, stating that people construct social networks that are more or less efficient depending on their starting position in the system. Then we add the resource dependency, considering that those people will use these networks to bring resources to the firm. Over a case study methodology, we also use a network design approach, based on information gathered through annual reports, data bases and web sites. Our results show that the studied board was organized to open access to a series of strategic resources like financial resources, business opportunities, human resources recruitment facilities, legitimacy and social recognition and political connections prone to protect the firm against adverse laws or rulings.