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How do interorganizational and interpersonal networks affect a firm's strategic adaptive capability in a transition economy?

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  • Ma, Xufei
  • Yao, Xiaotao
  • Xi, Youmin
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Abstract

This paper examines the effects of a firm's interorganizational network characteristics and a CEO's interpersonal network ties on a firm's strategic adaptive capability in a transition economy. Using a unique survey dataset of 250 Chinese firms, the paper focuses on the compositional diversity of a firm's interorganizational network and the structural holes in a CEO's interpersonal network. The results show that an interorganizational network that is diverse in composition and an interpersonal network that is rich in structural holes have significantly positive effects on a firm's strategic adaptive capability in China's transition economy. However, a negative interaction effect occurs between interorganizational network diversity and interpersonal network structural holes. The results suggest that managers simultaneously consider both the individual and joint effects of interorganizational and interpersonal network characteristics when developing firm strategies.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Business Research.

Volume (Year): 62 (2009)
Issue (Month): 11 (November)
Pages: 1087-1095

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Handle: RePEc:eee:jbrese:v:62:y:2009:i:11:p:1087-1095

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Web page: http://www.elsevier.com/locate/jbusres

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Keywords: Network diversity Structural hole Strategic adaptive capability Transition economy Alliance;

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Cited by:
  1. Lau, Chung-Ming, 2011. "Team and organizational resources, strategic orientations, and firm performance in a transitional economy," Journal of Business Research, Elsevier, vol. 64(12), pages 1344-1351.
  2. Ciravegna, Luciano & Majano, Sara B. & Zhan, Ge, 2014. "The inception of internationalization of small and medium enterprises: The role of activeness and networks," Journal of Business Research, Elsevier, vol. 67(6), pages 1081-1089.
  3. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
  4. Wang, Jing & Hu, Michael Y. & Shanker, Murali, 2012. "Human agency, social networks, and FOSS project success," Journal of Business Research, Elsevier, vol. 65(7), pages 977-984.
  5. Ciravegna, Luciano & Lopez, Luis & Kundu, Sumit, 2014. "Country of origin and network effects on internationalization: A comparative study of SMEs from an emerging and developed economy," Journal of Business Research, Elsevier, vol. 67(5), pages 916-923.

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