Industrial dynamics and managerial networking in an emerging market: The case of China

Research output: Contribution to journalArticlepeer-review

Abstract

This study examines how industrial conditions influence the level of executives’ managerial networking with decision-makers in other entities such as buyers, suppliers, competitors, dis-tributors, and regulators in an emerging market. Corroborating a view that social capital holds contingent value, we theorize that executives facing different industrial conditions have different levels of commitment to exploiting interpersonal ties for fulfilling organizational needs. We propose that managerial networking is influenced by exogenous industrial attributes such as structural uncertainty, sales growth, regulatory stringency, competitive pressure, and production capacity utilization. Our analysis of executives in 364 firms in China demonstrates that the level of managerial networking increases when uncertainty, regulation, and competition increase and production capacity utilization decreases. For a specific firm, the link between industrial dynam-ics and managerial networking is moderated by its strategic proactiveness.

Original languageEnglish (US)
Pages (from-to)1315-1327
Number of pages13
JournalStrategic Management Journal
Volume24
Issue number13
DOIs
StatePublished - Dec 2003

Keywords

  • Emerging market
  • Industrial conditions
  • Managerial networking

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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