Managerial ties and firm performance in a transition economy: The nature of a micro-macro link

Mike W. Peng, Yadong Luo

Research output: Contribution to journalArticle

1415 Scopus citations


Using survey data from China, we demonstrate that managers' micro interpersonal ties with top executives at other firms and with government officials help improve macro organizational performance. This micro-macro link differs among firms with different (1) ownership types, (2) business sectors, (3) sizes, and (4) industry growth rates. In addition, managerial ties were found to be necessary but insufficient for good performance; a number of traditional strategy variables also drive performance. Theoretically, the findings point to the importance of the social context in which managerial ties are embedded. Empirically, this study provides the first set of quantitative data demonstrating both the extent and limits to which managerial ties are beneficial in a transition economy.

Original languageEnglish (US)
Pages (from-to)486-501
Number of pages16
JournalAcademy of Management Journal
Issue number3
StatePublished - Jun 2000
Externally publishedYes


ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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