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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

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.

Suggested Citation

  • Ma, Xufei & Yao, Xiaotao & Xi, Youmin, 2009. "How do interorganizational and interpersonal networks affect a firm's strategic adaptive capability in a transition economy?," Journal of Business Research, Elsevier, vol. 62(11), pages 1087-1095, November.
  • Handle: RePEc:eee:jbrese:v:62:y:2009:i:11:p:1087-1095
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Papastamatelou Julie & Busch Rainer & Ötken Begüm & Okan Elif Y. & Gassemi Karim, 2016. "Effects of Network Capabilities on Firm Performance across Cultures," International Journal of Management and Economics, De Gruyter Open, vol. 49(1), pages 79-105, March.
    3. 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.
    4. 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.
    5. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    6. 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.
    7. 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.
    8. Erevelles, Sunil & Fukawa, Nobuyuki & Swayne, Linda, 2016. "Big Data consumer analytics and the transformation of marketing," Journal of Business Research, Elsevier, vol. 69(2), pages 897-904.

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