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

Listed author(s):
  • Ma, Xufei
  • Yao, Xiaotao
  • Xi, Youmin
Registered author(s):

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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File URL: http://www.sciencedirect.com/science/article/pii/S0148-2963(08)00210-5
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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
Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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  1. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
  2. Juster, F Thomas & Stafford, Frank P, 1991. "The Allocation of Time: Empirical Findings, Behavioral Models, and Problems of Measurement," Journal of Economic Literature, American Economic Association, vol. 29(2), pages 471-522, June.
  3. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
  4. Xufei Ma & Xiaotao Yao & Youmin Xi, 2006. "Business group affiliation and firm performance in a transition economy: A focus on ownership voids," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 467-483, December.
  5. Vipin Gupta & Jifu Wang, 2004. "From Corporate Crisis to Turnaround in East Asia: A Study of China Huajing Electronics Group Corporation," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 213-233, 03.
  6. John Child & Lu Yuan, 1996. "Institutional Constraints on Economic Reform: The Case of Investment Decisions in China," Organization Science, INFORMS, vol. 7(1), pages 60-77, February.
  7. Akbar Zaheer & Srilata Zaheer, 1997. "Catching the Wave: Alertness, Responsiveness, and Market Influence in Global Electronic Networks," Management Science, INFORMS, vol. 43(11), pages 1493-1509, November.
  8. Tan, Justin & Li, Shaomin & Xia, Jun, 2007. "When iron fist, visible hand, and invisible hand meet: Firm-level effects of varying institutional environments in China," Journal of Business Research, Elsevier, vol. 60(7), pages 786-794, July.
  9. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
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