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Article
Publication date: 31 May 2021

Renhuai Liu, Chao Li and Mengjun Huo

The purpose of this paper is to empirically analyze the impact of chief executive officer (CEO) turnover on strategic change and explore the mediating role of organizational slack…

Abstract

Purpose

The purpose of this paper is to empirically analyze the impact of chief executive officer (CEO) turnover on strategic change and explore the mediating role of organizational slack between them, as well as the moderating role and joint moderating role of top management team (TMT) external social network, ownership nature and industry type.

Design/methodology/approach

Based on the upper echelons theory, resource allocation theory and structuration theory, this paper takes the unbalanced panel data of A-share listed companies in Shanghai and Shenzhen Stock Exchanges of China from 2001 to 2018 as the research sample, uses ordinary least squares (OLS) regression method and fixed effect model to study the relationship between CEO turnover and strategic change, and focuses on the mediating mechanism and moderating mechanism between them.

Findings

The authors find that CEO turnover is positively related to strategic change. When a CEO turns over, a new CEO will initiate strategic change. Precipitation organizational slack plays a mediating role between CEO turnover and strategic change. Non-precipitation organizational slack has no mediating effect between CEO turnover and strategic change, which is embodied as “suppressing effects.” When the non-precipitation organizational slack variable is controlled, the impact of CEO turnover on strategic change will be enhanced. TMT external social network, ownership nature and industry type all negatively moderate the relationship between CEO turnover and strategic change. TMT external social network and ownership nature have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive effect on strategic change in both state-owned enterprises and non-state-owned enterprises, but the promotion effect is stronger in non-state-owned enterprises. When TMT external social network is large, the positive effect of CEO turnover on strategic change in state-owned enterprises is from strong to weak, but in the non-state-owned enterprises is from weak to strong. TMT external social network and industry type have a joint moderating effect between CEO turnover and strategic change. When TMT external social network is small, CEO turnover has a positive impact on strategic change in high-tech enterprises and non-high-tech enterprises, but the promotion effect is stronger in non-high-tech enterprises. When TMT external social network is large, the positive impact of CEO turnover on strategic change in high-tech enterprises is from strong to weak, but in the non-high-tech enterprises is from weak to strong.

Originality/value

On the basis of previous studies, this paper further expands the research scope of the mechanism of CEO turnover on strategic change, echoing the research arguments of relevant scholars. At the same time, the research results reveal the mechanism of organizational slack, TMT external social network, ownership nature and industry type in the relationship between CEO turnover and strategic change, and further deepen the application of upper echelons theory, resources allocation theory and structuration theory in China. In addition, the research conclusions of this paper also provide reference value for Chinese enterprises in carrying out strategic change, promoting enterprise transformation and improving the level of corporate governance, and help to enhance the understanding and attention of Chinese enterprises to CEO turnover, organizational slack, TMT external social network, strategic change and corporate governance under the background of high-quality economic development.

Details

China Finance Review International, vol. 13 no. 4
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 6 October 2022

Xiaoyong Zheng

Although social networks play an important role in individual ambidexterity, few studies have examined the impact of salespeople's social networks on sales-service ambidexterity…

Abstract

Purpose

Although social networks play an important role in individual ambidexterity, few studies have examined the impact of salespeople's social networks on sales-service ambidexterity. The purpose of this paper is to explore how salespeople's internal and external social networks affect sales-service ambidexterity.

Design/methodology/approach

The unique data of 331 salespeople from 39 units in retail banking industry and insurance industry were collected, and the hierarchical linear model was adopted to test the hypotheses. Finally, the alternative measure of the dependent variable and the alternative estimation method were adopted for robustness test.

Findings

The results show that the strength of salespeople's internal social networks and the extensiveness of salespeople's external social networks could facilitate sales-service ambidexterity of salespeople separately and synergistically. Salespeople's role breadth self-efficacy partially mediates the influences of internal and external social networks on sales-service ambidexterity, while empowerment climate and transformational leadership positively moderate the aforementioned mediational process by strengthening the relationship between salespeople's role breadth self-efficacy and sales-service ambidexterity.

Practical implications

Practical guidelines are provided for managers to shape ambidextrous salespeople by facilitating salespeople's internal and external social networks, promoting transformational leadership and creating empowerment climate within the unit.

Originality/value

To the best of the author's knowledge, this paper is the first to systematically examine the impact of salespeople's social network on sales-service ambidexterity. Drawing from social cognitive theory and the ambidexterity literature, this research reveals the mechanism of how salespeople's internal and external social networks contribute to sales-service ambidexterity.

Details

Management Decision, vol. 60 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 10 June 2020

Yu Liu and Houjian Li

The purpose of this paper, based on first-hand data from 255 chairmen of planting cooperatives in Sichuan province, is threefold: to understand their social network heterogeneity;…

Abstract

Purpose

The purpose of this paper, based on first-hand data from 255 chairmen of planting cooperatives in Sichuan province, is threefold: to understand their social network heterogeneity; to understand the significance for members of marketing innovation in farmers' cooperatives and to understand the effects of chairmen's social network heterogeneity on cooperative marketing innovation.

Design/methodology/approach

The research employs an empirical survey of the chairmen of planting cooperatives in rural Sichuan province. The researchers use the ordinary least squares method to conduct regression on the data and the generalized linear model to process the data and avoid errors in the model setting. In the study, the following two hypotheses are examined: (1) The heterogeneity of chairmen's social networks has positive effects on cooperative marketing innovation; (2) The effects of heterogeneous external and internal social networks on cooperative marketing innovation are different.

Findings

The results show that both external and internal social network heterogeneity has positive effects on cooperative marketing innovation, and the effects of internal heterogeneity are greater than that of external heterogeneity.

Originality/value

This paper contributes to improving the income of farmers, the innovation of farmers' cooperatives and the development of agriculture in China. It provides a new way of managing and serving members to enable the long-term sustainable development of farmers' cooperatives.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 10 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 16 January 2017

Emmanuel Josserand, Achim Schmitt and Stefano Borzillo

This paper aims to analyze how business units can use their employees’ external social capital to explore and exploit the resources available in their environment. Based on…

Abstract

Purpose

This paper aims to analyze how business units can use their employees’ external social capital to explore and exploit the resources available in their environment. Based on multiple interviews with the employees of the global commodity firm Gamma Chemical (around 50,000 employees), the research aims at gaining an understanding of the contextual conditions required to successfully build and leverage individuals’ external social client network ties for business unit ambidexterity.

Design/methodology/approach

The authors conducted a single-case study at Gamma Chemical that entailed 33 semi-directive interviews, each of which lasted 1-4 h, at different organizational levels (ranging from top-level management to production workers). We had access to three regional business units. The interviews addressed the links between the individuals in the business units and external actors. The authors also collected information about the company’s strategic objectives, the local competitive environment and work organization. Open-ended questions were used to allow the interviewees to freely relate anecdotes about their own network development. In particular, the authors asked the respondents to identify business contacts with whom they interacted privately and to describe the relationships.

Findings

The research findings are two-fold. First, and contrary to prior studies, the authors find that individuals’ social capital contributes to both exploration and exploitation at the business unit level. Second, developing and leveraging individuals’ external social capital requires a specific organizational context at the business unit level that allows employees to develop and nurture their personal business relationships with clients.

Research limitations/implications

The study is limited by the scope of the sample (a study of one large multinational firm). Further research conducted in similar contexts may therefore be useful for comparability purposes and to generalize the results.

Practical implications

Several practical recommendations describe how managers can effectively make use of their employees’ social connections with clients. In particular, the results suggest that managers should seek business unit flexibility on the basis of team-based structures, an autonomous leadership style and by actively creating a degree of critical social network tie redundancy, encouraging a shared network culture. These three specific conditions allow employees’ personal client networks to not only flourish but also contribute to business unit ambidexterity.

Originality/value

Prior social capital studies have analyzed intra-firm and inter-firm relationships in terms of contributing to firm ambidexterity. However, these findings have often been difficult to translate into specific organizational levels. Given business units’ critical role in identifying and implementing business opportunities for a firm, the authors focus on the micro-foundations of exploratory and exploitative learning by using a social capital perspective to explore the link between employees’ private external social relationships with clients and business unit ambidexterity. In this way, we contribute to the social capital literature and research on business unit ambidexterity and to extant contextual ambidexterity research by specifying the conditions that help firms develop and leverage their employees’ own external social capital for exploration and exploitation.

Details

Journal of Business Strategy, vol. 38 no. 1
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 31 August 2010

L.J. Gutiérrez Gutiérrez and V. Fernández Pérez

The paper aims to study the effect of external managerial social networks on strategic flexibility for a quality management (QM) perspective. External social networks can affect…

6104

Abstract

Purpose

The paper aims to study the effect of external managerial social networks on strategic flexibility for a quality management (QM) perspective. External social networks can affect strategic flexibility positively. QM also contributes to developing these networks. However, there is currently a wide variety of alternatives for managing quality in organizations, such as ISO standards or the European Foundation for Quality Management model. Thus, different alternatives will influence the external social networks differently in ways that have repercussions for strategic flexibility. Testing these differences is the main purpose of this paper.

Design/methodology/approach

A total of 203 valid responses were classified in three groups: non‐QM, ISO, and total quality management (TQM) firms. Then, a comparative ANOVA analysis was performed to test differences among groups. Finally, different regressions were run to test the effects of external social networks (range, size and strength) on strategic flexibility depending of the observed group.

Findings

Paper results show that, depending on which QM initiative is implemented in the organization, the effects of external managerial networks on strategic flexibility vary. Thus, in organizations without QM, the range of external social networks influences strategic flexibility negatively, whereas in organizations with ISO standards, this negative effect disappears. In organizations with TQM, the paper finds the positive effect of both size and strength of relations in the networks.

Practical implications

The paper facilitates how to differentiate QM alternatives depending on their observed behavior.

Originality/value

A new perspective (QM) is observed to test how managerial networks affect strategic flexibility.

Details

Industrial Management & Data Systems, vol. 110 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 August 2012

Petru L. Curşeu, Jörg Raab, Jing Han and Aukje Loenen

This paper sets out to test the mediating role of internal network density and external network range in the relationship between educational diversity (i.e. separation and…

2493

Abstract

Purpose

This paper sets out to test the mediating role of internal network density and external network range in the relationship between educational diversity (i.e. separation and variety) and group effectiveness.

Design/methodology/approach

The authors surveyed 267 employees in 54 organizational groups.

Findings

The study's results show that educational separation has a U‐shaped relationship with the advice network density. Moreover, educational variety moderates the relation of educational separation with external network range in such a way that for groups with high educational variety, the relationship between educational separation and external network range is U‐shaped, while for groups with low educational variety the relationship has an inverted U shape. The results also show that internal network density and external network range mediate the relationship between educational diversity and group effectiveness.

Research limitations/implications

The paper extends the literature on group diversity by simultaneously exploring two forms of educational diversity (separation and variety) as they relate to group network density and external network range. The study is cross‐sectional, restricting causal inferences and future research should further explore the way in which the alignment of educational variety and separation relates to social network structure and group effectiveness.

Practical implications

Understanding the association between educational diversity and group social network structure and the way they relate to group effectiveness enables managers to improve group effectiveness.

Originality/value

The paper is one of the first to explore the curvilinear association between educational diversity and social network structure.

Social implications

By exploring the relation between diversity and social network structures, these results increase understanding of how to address diversity issues at the societal level.

Article
Publication date: 7 May 2021

Fiona Robertson

This paper aims to investigate social influences on the UK integrated reporting (<IR>) adoption and implementation.

Abstract

Purpose

This paper aims to investigate social influences on the UK integrated reporting (<IR>) adoption and implementation.

Design/methodology/approach

The study was based on in-depth semi-structured interviews with 36 senior executives actively involved in <IR> within 17 organisations.

Findings

Main social influences on adoption externally were reported design consultants and to a lesser extent, external auditors, primarily to legitimise <IR>. Internal influences were board support for <IR>, with the main driver being the mind-set of the CFO/Chairman to drive sustainability throughout the organisation or to regain trust in society. Social influences aiding further diffusion at the implementation stage came from three external sources: business networks; report design consultants; and external auditors. Internal influences in driving <IR> diffusion within organisations were identified in five functional areas, with finance, sustainability and communications functions exerting the greatest external influence on the diffusion of <IR>.

Research limitations/implications

This research study was limited by the small sample of organisations that participated, although significant efforts were made to ensure that the sample incorporated the majority of early adopter UK organisations who demonstrated best practice in <IR>. Therefore, the findings are specific to the research context and do not represent statistical generalisations.

Practical implications

Empirical evidence identifying social influences from a practitioner perspective provides recommendations as to how <IR> may be further diffused in the future.

Social implications

<IR> creates the potential to significantly improve the long-term health of corporations and the external environment they impact through consideration of the three indivisible and integrated dimensions of sustainable development, the economy, society and the environment and can contribute to a sustainable society by providing the opportunity for organisations to respond to the UN Sustainable Development Goals. This highlights the significance of the research, which aims to gain insights into <IR> social influences which can assist in the adoption and implementation of <IR>.

Originality/value

This is the first comprehensive study of social influences on the <IR> adoption and implementation practices in the UK. It incorporates recommendations to improve the likelihood of subsequent adoption and diffusion of <IR> based on the findings.

Details

Journal of Global Responsibility, vol. 12 no. 3
Type: Research Article
ISSN: 2041-2568

Keywords

Article
Publication date: 12 March 2018

Jing Han

The paper aims to propose a conceptualization of two types of team social capital: team-bonding and team-bridging social capital. Throughout the conceptual effort, the paper…

1597

Abstract

Purpose

The paper aims to propose a conceptualization of two types of team social capital: team-bonding and team-bridging social capital. Throughout the conceptual effort, the paper provides suggestions for future research avenues that link team social capital, as a distinct team-level construct, with other team research topics.

Design/methodology/approach

The conceptualization of team social capital is based on a review and synthesis of prior research about social networks. The propositions about the relationships of team social capital with other team process and effectiveness variables are developed within the classical input-mediator-output framework.

Findings

The conceptualizations of team-bonding and team-bridging social capital and the common measures for each are provided. Moreover, a series of testable propositions regarding the associations between team social capital and team process, the influence of team social capital on team effectiveness and the antecedents of team social capital are made.

Research limitations/implications

Because of the chosen research approach, the research results may lack generalizability. Therefore, researchers are encouraged to test the proposed propositions further.

Originality/value

This paper elaborates the concept of team social capital and specifies its implications to various team phenomena. With this conceptual effort, this paper has advanced our knowledge about the nature and role of team social capital in team research.

Details

Team Performance Management: An International Journal, vol. 24 no. 1/2
Type: Research Article
ISSN: 1352-7592

Keywords

Book part
Publication date: 26 August 2014

Raymond Henry and Lisa Bosman

This study analyzes the impact of different types of social capital (structural, relational, cognitive) from different sources (internal and external) generated in electronic…

Abstract

Purpose

This study analyzes the impact of different types of social capital (structural, relational, cognitive) from different sources (internal and external) generated in electronic social networks on organizational performance.

Design/methodology/approach

We test our hypotheses using OLS regression analysis of data obtained from nonprofit organization (NPO) fundraising on a popular online social networking website.

Findings

The results provide insights into the multifaceted, complex nature of social capital in electronic environments. We find that electronic social capital does indeed impact organizational outcomes, but that these impacts vary depending on the type of social capital, the type of outcomes, and roles within the social network.

Originality/value

These results clearly indicate the need to further research exploring social capital, in all its forms, within increasingly popular online and electronic social networks. While specifically applicable to NPOs, the findings also provide important insights for a wide variety of organizations.

Details

Social Media in Strategic Management
Type: Book
ISBN: 978-1-78190-898-3

Keywords

Content available
Article
Publication date: 25 March 2022

Mengjun Huo and Chao Li

Innovation is the most important quality of enterprise management. It is an important and controversial issue whether the heterosexual leadership structure of the chairman and…

Abstract

Purpose

Innovation is the most important quality of enterprise management. It is an important and controversial issue whether the heterosexual leadership structure of the chairman and chief executive officer (CEO) makes the work “easy” or “very tired” in enterprise innovation. This study investigates the specific impact of the heterosexual leadership structure on enterprise innovation investment, and further explores influence mechanism between them from two perspectives. Specifically, from the perspective of enterprise leaders including the chairman and CEO, this paper analyzes the impact of surname sharing, intergenerational differences and top management team (TMT) external social network between the heterosexual leadership structure and enterprise innovation investment. And from the perspective of enterprise itself, this study explores the impact of ownership and organizational slack between the heterosexual leadership structure and enterprise innovation investment.

Design/methodology/approach

By using ordinary least squares regression (OLS), this study mainly takes the unbalanced panel data of A-share listed companies from 2008 to 2019 in Shanghai and Shenzhen as the research sample to empirically analyze the relationship and influence mechanism between the heterosexual leadership structure and enterprise innovation investment.

Findings

The results show that the heterosexual leadership structure of the chairman and CEO has a negative impact on enterprise innovation investment. Surname sharing and ownership positively moderate the negative impact of the heterosexual leadership structure of the chairman and CEO on enterprise innovation investment. Intergenerational differences and TMT external social network negatively moderate the relationship between the heterosexual leadership structure of the chairman and CEO and enterprise innovation investment. In addition, the moderating effects of intergenerational differences and TMT external social network on the relationship between the heterosexual leadership structure and enterprise innovation investment both depend on organizational slack. When organizational slack is lower and intergenerational differences are higher, the negative impact of the heterosexual leadership structure of the chairman and CEO on enterprise innovation investment will be the strongest. And when organizational slack is lower and TMT external social network is higher, the negative impact of the heterosexual leadership structure of the chairman and CEO on enterprise innovation investment will be the strongest.

Originality/value

By exploring the influence and the boundary mechanism of the heterosexual leadership structure of the chairman and CEO on enterprise innovation investment, the “heterosexual difference effect” is verified in this paper, that is, when men and women work together, work is very tired. This not only enriches the existing research of enterprise innovation investment, but also provides practical guidance for effectively improving enterprise innovation investment from a new perspective. In addition, it broadens the moderating mechanism of the impact of the heterosexual leadership structure of the chairman and CEO on enterprise innovation investment, which is conducive to reasonable response to improve enterprise innovation investment.

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