The moderating effect of national culture on board interlocks’ impact on firm performance: A meta-analysis

Abstract

Globalization has made it essential to examine the effectiveness of management practices in different cultural contexts. This study employs a meta-analysis method to explore the effects of board interlocks across cultures. Based on 56 empirical studies with 121 correlations between board interlocks and firm performance, this meta-analytic study shows a positive relationship between board interlocks and firm performance. It further demonstrates that the widely examined cultural dimensions including individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, and long-term vs. short-term orientation do not influence the impact of board interlocks on firm performance across cultures. The exception to this is that power distance and indulgence negatively moderate the relationship between board interlocks and firm performance: the impact of board interlocks on firm performance is stronger in cultures characterized by high power distance and low restraint. The findings of this study can help enrich the research on board interlocks and provide insights for international management.