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Second-order limitation: Uncovering latent effects of board network ties.(Statistical Data...

By Seidel, Marc-David L.; Stewart, Katherine J.; Westphal, James D.
Publication: Administrative Science Quarterly
Date: Saturday, December 1 2001

This study examines whether board interlock ties facilitate second-order imitation, in which firms imitate an underlying decision process that can be adapted to multiple policy domains, rather than imitating specific policies of tied-to firms (first-order imitation). Longitudinal analyses of archival data for a large sample of Forbes/Fortune 500 companies, as well as analyses of survey data on mimetic processes among these firms, show that network ties to firms that use imitation to determine a particular policy can prompt use of imitation by the focal firm in determining both that policy

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