Board Networks and Firms’ Technological Innovation Output: The Moderating Roles of Shareholder Networks and CEO Networks

Abstract

In the field of firms’ technological innovation, a large body of research has emphasized the roles of interlocking directors and the associated board networks in which they are embedded. By integrating the process perspective of absorptive capacity theory with stakeholder network theory, this study investigates the influence of board networks on firms’ technological innovation output, with particular attention given to the moderating effects of shareholder networks and CEO networks. The theoretical hypotheses suggest that degree centrality within board networks positively influences firms’ technological innovation output, and that this positive effect is weakened by degree centrality within both shareholder networks and CEO networks. While board networks facilitate information acquisition for technological innovation, shareholder networks and CEO networks may serve as substitutes. Furthermore, they may shape the motivations of shareholders and CEOs, potentially hindering the exploitation of information acquired through board networks. Using longitudinal data on Chinese A-share listed companies from 2005 to 2023, we construct three distinct types of interorganizational networks and annually measure firms’ degree centralities within each network type. Employing fixed-effects panel models, this study empirically verifies the proposed hypotheses. Practically, the findings offer important implications for firms seeking to align interorganizational networks with their technological innovation management strategies. We recommend that future research further explore the roles of diverse stakeholder networks in interorganizational contexts to enhance the understanding of how interactions across multilayer networks affect firms’ technological innovation output.