Relational Erotic Capital and Board Dynamics in the Context of Team Production and Value Creating Boards

What is erotic capital, and how is it influencing board dynamics? How can we develop research and knowledge about board dynamics and board members' erotic capital? Is erotic capital an enabler cross-cutting other capitals, or is it an independent board capital? In this reflection paper I try to identify how erotic capital can influence board dynamics, team production and corporate value creation. The theoretical background and starting point in this paper is the extended team production theory (Gabrielsson and Huse, 2023) and Hakim's publications on erotic capital (2010, 2011a). Board dynamics is about power and the human side of corporate governance, and erotic capital has hardly been used in the board literature. I argue that erotic capital today may be an important concept for exploring board dynamics and power. Two types of erotic capital are identified. Relational erotic capital is about attraction, while social erotic capital is about attractiveness. Relational erotic capital may have significant impact on board dynamic, for example by energizing the board as a team, creating cohesion and developing a boardroom culture. Social erotic capital is directly linked to distant stakeholders and contributes legitimacy and reputation. The paper thus concludes that erotic capital can moderate relations between other types of capital and board task performance as well as being an independent part of other capitals. Erotic capital has been seen as a taboo topic in board research and discussions. It has also been argued that it is impossible to do research on erotic capital. I disagree with this, and thus I outline research paths that can help us understand board dynamics as a result of erotic capital.