Linking managerial ties and organizations sustainability outcomes via knowledge management and business model innovation: the role of environmental turbulence

Managerial ties, which are the personal networks of top executives, are recognized as enhancers of an organization’s sustainability outcomes due to their network advantages. Yet, according to social network theory, these ties primarily serve as a pathway, offering potential access to external resources. The question then arises: How can companies convert these prospects into internal knowledge assets and leverage them for innovation? Previous investigations often depict a straightforward connection between managerial ties and the organization’s innovation. The present study, however, explores a nuanced view where the processes of knowledge management act as intermediaries. The research utilizes empirical data from 436 Chinese firms and employs partial least square structural equation modeling to uncover significant insights. The study’s findings include a significant influence of managerial ties on knowledge management, business model innovation, and an organization’s sustainability outcomes. Additionally, knowledge management and model innovation significantly play a mediating role, and environmental turbulence significantly moderates the influence of managerial ties on an organization’s sustainability outcomes. This investigation enhances understanding of managerial ties–knowledge management–business model innovation–and an organization’s sustainability outcomes relationships using social networks and institutional theory within a transitional economy. It also offers a deeper comprehension of how companies can access external resources, internalize them, and subsequently transform them into innovations.