Board Interlocks with Information Technology Firms and Innovation Outcomes: A Resource Dependence Perspective

Information technology (IT) innovation development within non-IT firms has been a key interest, but it is fraught with challenges because these firms lack sufficient IT knowledge. This study takes a resource dependence perspective to examine how engaging interlocking directorates with IT firms, or IT interlocks, affects non-IT firms' innovation outcomes. Despite the acknowledged role of board interlocks in knowledge transfer, the role of IT interlocks in transferring IT knowledge has not been studied. Using a large-scale panel dataset of Chinese public firms between 2000 and 2020, our findings reveal that IT interlocks of non-IT firms positively impact their IT innovation by transferring IT knowledge, particularly when the interlocked IT firms are knowledge-intensive. Our research contributes to the information systems literature by affirming IT interlocks' positive impact on innovation outcomes and highlighting the value of specific board relational capital in transferring external knowledge in need. It also offers practical implications for non-IT firms overcoming innovation challenges by establishing directorate connections with IT firms.