IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v22y2011i1p42-59.html
   My bibliography  Save this article

Getting a Bonus: Social Networks, Performance, and Reward Among Commercial Bankers

Author

Listed:
  • Mark S. Mizruchi

    (Department of Sociology, University of Michigan, Ann Arbor, Michigan 48109)

  • Linda Brewster Stearns

    (Department of Sociology, Southern Methodist University, Dallas, Texas 75275)

  • Anne Fleischer

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

Abstract

Research on the effects of social networks on individual status attainment has exploded in recent years, but the results remain equivocal, varying across network structures, types of ties, and outcome variables. The focus in this literature has been on two primary outcomes: performance benefits and rewards (including promotion and compensation). These two types of outcomes have often been conflated, however, despite the fact that high levels of one do not guarantee high levels of the other. We examined the effects of job performance, network tie strength, and network structures on the size of the year-end bonuses received by 71 relationship officers in a major, multinational commercial bank. We found that in networks based on information acquisition, both strong ties and sparse networks are positively associated with high bonuses, as is the combination of the two. In networks based on approval and support for one's deals, neither tie strength nor density predicts bonus size, but the benefits of strong ties increase as network density increases. Our results demonstrate the importance of distinguishing networks based on collegial relations from those based on authority, as well as the importance of distinguishing the network factors that improve performance from those that generate favorable evaluations independent of performance.

Suggested Citation

  • Mark S. Mizruchi & Linda Brewster Stearns & Anne Fleischer, 2011. "Getting a Bonus: Social Networks, Performance, and Reward Among Commercial Bankers," Organization Science, INFORMS, vol. 22(1), pages 42-59, February.
    • Handle: RePEc:inm:ororsc:v:22:y:2011:i:1:p:42-59
    DOI: 10.1287/orsc.1090.0516
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1090.0516
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.1090.0516?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Simon Rodan & Charles Galunic, 2004. "More than network structure: how knowledge heterogeneity influences managerial performance and innovativeness," Strategic Management Journal, Wiley Blackwell, vol. 25(6), pages 541-562, June.
    2. Bilian Ni Sullivan & Pamela Haunschild & Karen Page, 2007. "Organizations Non Gratae? The Impact of Unethical Corporate Acts on Interorganizational Networks," Organization Science, INFORMS, vol. 18(1), pages 55-70, February.
    3. Manju K. Ahuja & Dennis F. Galletta & Kathleen M. Carley, 2003. "Individual Centrality and Performance in Virtual R& D Groups: An Empirical Study," Management Science, INFORMS, vol. 49(1), pages 21-38, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adam M. Kleinbaum, 2018. "Reorganization and Tie Decay Choices," Management Science, INFORMS, vol. 64(5), pages 2219-2237, May.
    2. Zou, Xi & Ingram, Paul, 2013. "Bonds and boundaries: Network structure, organizational boundaries, and job performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 120(1), pages 98-109.
    3. Andersen, Kristina Vaarst, 2013. "The problem of embeddedness revisited: Collaboration and market types," Research Policy, Elsevier, vol. 42(1), pages 139-148.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guan, Jiancheng & Yan, Yan & Zhang, Jing Jing, 2017. "The impact of collaboration and knowledge networks on citations," Journal of Informetrics, Elsevier, vol. 11(2), pages 407-422.
    2. Liu Li & Chaoying Tang, 2020. "How Does Inter-Organizational Cooperation Impact Organizations’ Scientific Knowledge Generation? Evidence from the Biomass Energy Field," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    3. Taiye Luo & Zhengang Zhang, 2021. "Multi-network embeddedness and innovation performance of R&D employees," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 8091-8107, September.
    4. Barthélemy Chollet, 2008. "L’analyse des réseaux personnels dans les organisations:quelles données utiliser?," Revue Finance Contrôle Stratégie, revues.org, vol. 11(1), pages 105-130, March.
    5. Osmar Arandia Pérez & Luis Portales Derbéz, 2012. "Social Networks: A strategy for non-profit organizations," Revista Observatorio Calasanz, Universidad Cristobal Colon, Dpto. de Investigacion y Posgrado, vol. 3(6), pages .362-378, Febrero.
    6. Xiaoxia Huang & Yuyin Liu & Jing Zhao, 2024. "The Impacts of Work-Family Conflict and Corporate Innovation on Organizational Performance," SAGE Open, , vol. 14(2), pages 21582440241, May.
    7. Sader, Myra & Chollet, Barthélemy & Brion, Sébastien & Trendel, Olivier, 2021. "Supported, detached, or marginalized? The ambivalent role of social capital on stress at work," European Management Journal, Elsevier, vol. 39(6), pages 768-778.
    8. Fu-Sheng Tsai & Gayle Baugh & Shih-Chieh Fang & Julia Lin, 2014. "Contingent contingency: Knowledge heterogeneity and new product development performance revisited," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 149-169, March.
    9. Hao, Bin & Feng, Yanan, 2018. "Leveraging learning forces in asymmetric alliances: Small firms’ perceived power imbalance in driving exploration and exploitation," Technovation, Elsevier, vol. 78(C), pages 27-39.
    10. Llopis, Oscar & D'Este, Pablo & McKelvey, Maureen & Yegros, Alfredo, 2022. "Navigating multiple logics: Legitimacy and the quest for societal impact in science," Technovation, Elsevier, vol. 110(C).
    11. Gupeng Zhang & Xiao Wang & Hongbo Duan, 2020. "Obscure but important: examining the indirect effects of alliance networks in exploratory and exploitative innovation paradigms," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 1745-1764, September.
    12. Vandor, Peter & Franke, Nikolaus, 2016. "See Paris and… found a business? The impact of cross-cultural experience on opportunity recognition capabilities," Journal of Business Venturing, Elsevier, vol. 31(4), pages 388-407.
    13. Soda, Giuseppe & Zaheer, Akbar & Sun, Xiaoming & Cui, Wentian, 2021. "Brokerage evolution in innovation contexts: Formal structure, network neighborhoods and knowledge," Research Policy, Elsevier, vol. 50(10).
    14. Lei Xu & Ronggui Ding & Lei Wang, 2022. "How to facilitate knowledge diffusion in collaborative innovation projects by adjusting network density and project roles," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(3), pages 1353-1379, March.
    15. Lutter, Mark, 2014. "Creative success and network embeddedness: Explaining critical recognition of film directors in Hollywood, 1900-2010," MPIfG Discussion Paper 14/11, Max Planck Institute for the Study of Societies.
    16. Lambiotte, R. & Panzarasa, P., 2009. "Communities, knowledge creation, and information diffusion," Journal of Informetrics, Elsevier, vol. 3(3), pages 180-190.
    17. Swart, Juani & Powell, John, 2012. "An analytical theory of knowledge behaviour in networks," European Journal of Operational Research, Elsevier, vol. 223(3), pages 807-817.
    18. Walter, Jorge & Lechner, Christoph & Kellermanns, Franz W., 2007. "Knowledge transfer between and within alliance partners: Private versus collective benefits of social capital," Journal of Business Research, Elsevier, vol. 60(7), pages 698-710, July.
    19. Jiancheng Guan & Lanxin Pang, 2018. "Bidirectional relationship between network position and knowledge creation in Scientometrics," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(1), pages 201-222, April.
    20. Eisingerich, Andreas B. & Bell, Simon J. & Tracey, Paul, 2010. "How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty," Research Policy, Elsevier, vol. 39(2), pages 239-253, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:22:y:2011:i:1:p:42-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.