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The focal firm is a chaebol in a major market.
However, they also bring about large general costs for the focal firm.
Each of these can provide a focal firm with critical resources.
By consequence, sent interlocks impose agency costs to the focal firm necessary to avoid their misuse.
They are said to "certify" the focal firm (Fahlenbrach et al. 2010).
Finally, just like received interlocks, undirected interlocks an outsiders' perspectives to the focal firm.
Hence, the focal firm will no longer have the sole access to this knowledge-based resource.
Sent interlocks open up a number of learning opportunities for the focal firm that translate into knowledge-based benefits.
Sent interlocks to other firms can result in major status and reputation gains for the focal firm.
Thus, the focal firm runs the risk that knowledge or advice provided via received ties is biased in this direction.
Opposed to the focal firm's executives, executives establishing received interlocks have not been socialized within the focal firm.
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CEO of Professional Science Editing for Scientists @ prosciediting.com