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Relationship between employees’ performance and social network structure: An empirical research based on a SME from a whole-network perspective

Meng Cai (Department of Management, Xi’an Jiaotong University, Xi’an, People’s Republic of China)
Haifeng Du (Center for Administration and Complexity Science, Xi’an Jiaotong University, Xi’an, People’s Republic of China)
Chen Zhao (Microsoft Research Asia, Redmond, Washington, USA, and)
Wei Du (Department of Public Policy and Administration, Xi’an Jiaotong University, Xi’an, People’s Republic of China)

Chinese Management Studies

ISSN: 1750-614X

Article publication date: 1 April 2014

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Abstract

Purpose

The aim of this paper, considering the two types of networks and the scope of power from structural holes, is to clarify the relationship between employees’ performance and their social network structure in Chinese small and medium enterprises from the whole-network perspective. The complicated relationship in Chinese culture requires human resource management (HRM) practitioners to be aware of the implications of social network.

Design/methodology/approach

An empirical research approach is used in this paper. Using the cluster sampling method, authors collected 118 employees’ characteristic data and network data by face-to-face interviews through structured questionnaire survey, and also got their performance data from the financial department, which support correlation analysis and OLS regression analysis.

Findings

First, informal network, but not formal network, has a significant impact on employees’ performance. Second, individual performance of brokerage is greater for direct than indirect contacts. Finally, broker-of-brokers will be the winner in the competition.

Originality/value

First, previous research focuses on egocentric network as the difficulty of data collection, while this paper analyzes a whole network based on the real social network. Second, this paper reveals the network structure mode where individuals get benefits. Third, it also uncovers the effect of relationship type on employees’ performance in Chinese SME. Finally, this paper identifies the status homophily and status crystallization phenomenon in the process of social network formation.

Keywords

Citation

Cai, M., Du, H., Zhao, C. and Du, W. (2014), "Relationship between employees’ performance and social network structure: An empirical research based on a SME from a whole-network perspective", Chinese Management Studies, Vol. 8 No. 1, pp. 85-108. https://doi.org/10.1108/CMS-09-2013-0156

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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