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The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations

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  • Julie Li

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Abstract

This study investigates how firms' strategic orientations (i.e., market, technology, and entrepreneurship orientations) influence the formation of two types of managerial networks (top managers' ties with the business community and with government officials), as well as the impact of managerial networking on firm performance. On the basis of a survey of 181 foreign-invested enterprises (FIEs) operating in China, we find that a market orientation fosters both types of network building. Technology-oriented firms are more likely to cultivate managerial ties with top managers at other firms but less likely to establish networks with government officials. In contrast, entrepreneurial firms tend to develop vertical networks with government officials but have no intention to deepen their horizontal networks with other firms. Competitive intensity moderates the relationships between strategic orientations and managerial ties. Finally, managerial networking has a positive impact on FIE performance. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Julie Li, 2005. "The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations," Asia Pacific Journal of Management, Springer, vol. 22(4), pages 423-443, December.
  • Handle: RePEc:kap:asiapa:v:22:y:2005:i:4:p:423-443 DOI: 10.1007/s10490-005-4118-8
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    References listed on IDEAS

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    1. Zhou, Kevin Zheng & Gao, Gerald Yong & Yang, Zhilin & Zhou, Nan, 2005. "Developing strategic orientation in China: antecedents and consequences of market and innovation orientations," Journal of Business Research, Elsevier, vol. 58(8), pages 1049-1058, August.
    2. Aimin Yan, 2001. "Antecedents and Effects of Parent Control in International Joint Ventures," Journal of Management Studies, Wiley Blackwell, vol. 38(3), pages 393-416, May.
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