The Changing Structure of Intercorporate Relations Among Britain's Largest Retail Firms, 1975-1997

Abstract

Empirical studies of the structure of intercorporate relations among large firms in Britain and elsewhere have revealed extensive networks of interconections through interlocking directorships. Although the significance of such linkages has been much discussed, they are widely held to constitute important communication channels which may play a significant role in firms' strategic decision-making. However, these issues have not been examined previously in the case of Britain's retail sector. This paper explores the links, via shared directors, between Britain's twenty largest retail companies over the last two decades. The retailers' connections with other major financial and industrial concerns are also explored. The results indicate that intercorporate relations in the retail sector have been radically transformed as these firms have become progressively integrated into Britain's wider business network.