Studies on board interlocks are divided into two streams, one examining their dynamics; the other, their consequences. Our paper proposes that both phenomena – board interlock dynamics and board interlock consequences – are interdependent. Adopting a structuration theoretical perspective, we theorize and empirically demonstrate how firm’s corporate strategic actions (specifically, acquisitions and divestitures) influence their board interlock networks and how these networks, in turn, influence the firm’s corporate strategic actions, revealing their recursive nature. Integrating these heretofore disjunct research streams, we complement the corporate governance literature by providing evidence that corporate strategic actions and board interlock networks coevolve. We contribute to theory on strategic networks by applying a structuration theory lens. Lastly, we illustrate methodological advances by using stochastic actor-oriented models to analyze coevolution processes.
