Although the precise significance of any particular directorate interlock is highly context dependent (Mizruchi 1996), the entire set of interlocks that constitute an intercorporate
network serves to reinforce elite solidarity while enabling interfirm relations of communication, coordination, influence, and control (Carroll and Sapinski 2010).
The whole concept of social capital is based on the notion of availability and needs of social cooperation among inter-family groups, intercorporate
groups, inter-institutions, and the overall relations among all these.
* Affiliate problems: When investments in, or intercorporate
transactions with, one or more related companies cause, or have the potential to cause, financial difficulties for the entire group.
"The recent agreement with World Bank and Asian Development Bank staffs on the electricity sector reform signals a desire to address the deep-seated problems in that sector, including the resolution of the intercorporate
circular debt, which burdens the energy sector enterprises, and the elimination of tariff differential subsidies within a year from now, making additional fiscal resources available for priority spending.
This has been achieved because of generation capacity addition, clearance of the bigger part of intercorporate
debt by Rs.81 billion and better management which includes conservation equalling 1000 MW through an awareness campaign.
Salancik, The External Control of Organizations: A Resource Dependence Perspective (New York, 1978); Jeffrey Pfeffer, "A Resource Dependence Perspective on Intercorporate
Relations," in Intercorporate
Relations: The Structural Analysis of Business, ed.
As the Paramount and CBS assets face growing intercorporate
competition (they are separate publicly held entities), there will be mounting pressure on both to launch major acquisitions and build new power centers.
The software license iconstruye had initially issued to its customers soon started to show its limitations in relation to the traditional intercorporate
and intracorporate procurement processes used in Chile.
The obstacles here are manifold, including issues of technological integration as well as intercorporate
complexities of data-sharing, security, brand control, and confidentiality.
However, information asymmetries and incentive conflicts within the opaque intercorporate
network would still degrade the adjustment process.
1987 'A resource dependence perspective on intercorporate
relations' in Intercorporate
Relations: the Structural Analysis of Business, ed M.S.
As an example, Brownlee reveals how Canadian conglomerates now "employ one-third of the Canadian workforce and account for one-half of total business revenue." (36) It is this growing intercorporate
ownership that provided the elite with a structural basis for developing a class-wide strategy around neoliberalism.