Interlocking Directorates as Corporate Governance in Third World Multinationals: Theory and Evidence from Thailand

Given the paucity of corporate governance research on Third World multinational enterprises (MNEs), we provide an exploratory description of the patterns of interlocking directorates as corporate governance in Thailand-based MNEs in this study. Specifically, we raise a key question: Do the interlocks network attributes and individual board directors of MNEs differ systematically from those of non-MNEs? Drawing upon resource dependence theory, we hypothesize that, compared with non-MNEs, MNEs in Thailand (1) have more densely connected interlocks, (2) occupy more central locations in the interlocks network, (3) have more ethnic Chinese directors, and (4) appoint more military directors. Data from the top 200 listed firms in Thailand support three of the four hypotheses, and suggest a number of implications and future research directions.