Abstract
This paper aims to enrich social network and managerial powers theories by examining the effects of board-CEO friendship ties in tourism firms. Specifically, we focus on the association between the board-CEO social network ties (e.g., serving external boards together or sharing memberships at social organizations) and performance and risk-taking behaviour among tourism firms. The findings show that friendship ties between CEO and board members result in higher risk-taking, lower profitability, and market values. In addition, professional ties (i.e., current and past employment) significantly impact tourism firms’ outcomes, whereas non-professional ties (i.e., education and other social organizations) do not. The findings prevail after controlling for the Covid-19 pandemic. However, friendship ties lead to better information sharing, resulting in more effective decision-making by board members.
Original language | English |
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Pages (from-to) | 2103-2128 |
Journal | Tourism Economics |
Volume | 29 |
Issue number | 8 |
Early online date | 24 Sept 2022 |
DOIs | |
Publication status | Published - Dec 2023 |
Bibliographical note
This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. Further copying may not be permitted; contact the publisher for detailsKeywords
- Board-CEO ties
- Collusive behaviour
- Firm’s risks
- Firms’ performance
- Market value
- Governance
- Tourism firms