Power, Intercorporate Networks, and "Strategic Bankruptcy"

Abstract

Strands of scholarly writing on corporate bankruptcy are scattered across the fields of economics, jurisprudence, political science, and policy analysis. These varied perspectives tend to share common weaknesses that point directly to adding a sociological voice to the debate. An analytic framework that emphasizes power, interorganizational ties, and the embeddedness of organizational action in a larger social structure yields new insights into "strategic bankruptcies," such as the Chapter 11 filing of the Manville Corporation. In turn, this perspective leads to a questioning of some of the basic assumptions concerning the role and operation of bankruptcy law.