The organizational connection: Social capital and the career expansion of directors of business groups in Israel

This article studies which directors of the largest corporations forming part of the Israeli business groups accumulated directorships within the groups between the years 1974 and 1988. A comparison is made between directors within business groups who accumulate directorships and those who do not, and in addition, the research focuses on directors who joined additional boards, questioning who gets ahead in terms of three components of social capital: organizational positions, elite positions, and social networks. The study uses logistic regression to discern which variables increase the likelihood of being invited onto an additional board within the business groups and the likelihood of getting ahead. The findings strongly support the hypothesis that the organizational position of directors, more than their elite position ties and social networks, is the most significant determinant of who will join additional boards and who will get ahead. The article is concluded with a discussion of several factors contributing to relative impact of organizational positions.