The Absorptive Capacity of the Network of Multiple Directors in Corporate Groups

- An Empirical Study on Corporate Groups in the Japanese Chemical Industry -

Abstract

The research question of this study focuses on how corporate groups facilitate the creation and sharing of knowledge within the group while addressing the problem of knowledge homogenization. We focus on the network of multiple directors in Japanese corporate groups to demonstrate the impact of the two patterns of multiple directors within and outside the group on absorptive capacity. The data were subjected to a multivariate analysis using data from 4127 directors in 337 companies of 50 groups in the Japanese chemical industry in 2020. The results of the analysis demonstrate that absorptive capacity is facilitated by closed in-group and broader out-group relationships. This study contributes to corporate group research, network theory, and organizational learning theory.