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Informal networking is generally regarded as an important activity that is available to every manager, which usually results in positive outcomes. However, differences in networking behavior have been less frequently discussed and compared in a global context. We argue that different ideals of informal networking can result in situations where international managers can hardly foresee the potential consequences of their networking behavior, especially when local ideals of networking are not taken into account. Differences in networking behavior caused by differences in underlying values, norms, and ideals can lead to ethical dilemmas. At this junction, we point out the integral role favors and favor exchange play in global networking and suggest a competency framework that is helpful for international managers to navigate informal networking abroad and identify potential ethical dilemmas before they take effect.

The rise of emerging markets such as China, Brazil, Russia, and the Middle East has led to an increase in interest in understanding the nature and working mechanisms of informal networks (guanxi, yongo, wasta, blat/svyazi, etc.), which are instrumental in international business (IB) activities in these markets. Unlike Chinese informal networks, which have been researched extensively, studies on several other important informal networks remain sporadic and peripheral. From a theoretical point of view, it can be argued that the typical characteristics and behavioral ideals implied by social network theory do not fully reflect the networking ideals and practices in many non-Western countries. At the same time, international business practitioners may not have a thorough understanding of how to engage effectively in informal networking abroad or of how local managers actually network. Motivated by the wish to close this knowledge gap and work toward an inclusive and integrative theory of informal networks in international business studies, this paper suggests treating informal networks as an important type of social capital and informal institution of the respective business environment at the same time. As such, researching informal networks can be regarded a distinct research area positioned at the intersection of social capital, social network and (informal) institution theory. Finally, emerging theories are presented that indicate a path for developing informal network theory further in international business studies.

The purpose of this paper is to empirically examine capability connectivity, relationship alignment and the ability to informally network in the supply chain as determinants for better utilizing capabilities amongst supply chain partners. In particular, the paper focuses on how the above described determinants may impact on operational performance in the supply chain when responding to short‐lived demand requirements or highly dynamic markets.

A mixed research methodology is used, including a qualitative exploratory phase to confirm the relevance of the research question to the practitioner, followed by quantitative structural equation modeling, based on a sample of 231 supply chain professionals.

In total, four determinants of informal networking were derived: capability connectivity, describing the ability of supply chain partners to rapidly and informally integrate capabilities, such as IT, to service an ad hoc market requirement; relationship alignment or the ability to informally integrate resources across supply chain partners in the context of highly dynamic market situations; the informally networked supply chain itself, measuring the ability of supply chain partners to respond to transient opportunities in the context of highly dynamic markets; and finally operational performance which measures the effect informal networking has on company performance. Results show that informal coordination of supply chain activities influences operational performance in different ways, and most significantly impacts positively on operational efficiency through supply‐oriented informal networking. The study identified that industry rules and regulations have a significant impact on the propensity of supply chain partners to collaborate informally. Finally, it is also shown that relationship alignment between companies is an important factor to achieve both market‐ and supply‐oriented informal networking capabilities.

The management of industry rules, regulation, connectivity, and relationship alignment are significant antecedents for informal coordination of supply chain capabilities in business networks. The study shows positive effects of informal networking in supply chains on operational efficiency, and suggests that companies should strive to enable greater flexibility to connect with their trading partners without an abundance of idiosyncrasies. Furthermore, relationship alignment, in combination with process and IT connectivity, is significant in creating the foundation for informal networking in supply chains, in particular for supply‐related activities.

The paper adds a new concept, the informally networked supply chain, and shows that capability connectivity and relationship alignment may enable new alternative ways of coordinating supply chain capabilities to meet a specific market requirement. As such, it offers a new perspective in relation to flexibility and agility in the supply chain.

This chapter discusses how firms can accrue unique advantages from their foreign status in the host country, with a particular focus on informal networks. Drawing on the literature on the liability and asset of foreignness, this chapter argues that foreign firms can be in a better position to balance between the bright and dark side of informal networks than local firms. Foreign firms can deviate from local isomorphic pressures to minimize potential involvement in negative sides. Moreover, they can build more instrumental informal networks in which the dark side of informal networking is better controlled and regulated without losing social cohesion, flexibility, and other benefits of the bright side. This chapter contributes to our understanding of how foreign firms can turn foreignness into assets from liabilities when managing their informal networks in the host country.

This paper aims to analyze the role of social networks on the job search choices of the unemployed. If social networks convey useful information in the job search process, individuals with larger networks should experience a higher productivity of informal search channels. This in turn affects the choice of formal search intensity and the reservation wage. The paper seeks to test these search‐theoretic implications of productive social networks empirically.

The authors use the IZA Evaluation Dataset containing detailed information on job search behavior of recently unemployed individuals. Observing a rich array of personality traits and direct measures of the social network, the authors choose an identification approach based on observable characteristics using least squares and binary probit regression analysis.

The findings confirm theoretical expectations. Individuals with larger networks use informal search channels more often and shift from formal to informal search. In addition to that, evidence is found for a positive relationship between network size and reservation wages.

The extent to which networks are used during job search most likely also depends on the quality of the network, which cannot be observed in the data. However, as the network significantly changes the observable formal job search effort of individuals, public job search monitoring policies should take these effects into account.

The paper complements the previous body of literature on the role of social networks in the labor market that predominantly focuses on labor market outcomes. By highlighting the interaction between networks and job search choices the paper improves the understanding of realized labor market outcomes in the presence of networks.

The purpose of this paper is to explore the underlying relational properties of security networks by focusing specifically on the relationship between formal and informal ties, and interpersonal and inter-organisational trust.

The research is based on 20 qualitative interviews with senior members of police and security agencies across the field of counter-terrorism in Australia.

The findings suggest that the underlying relational properties of security networks are highly complex, making it difficult to distinguish between formal and informal ties, interpersonal and inter-organisational trust. The findings also address the importance of informal ties and interpersonal trust for the functioning of organisational security networks.

The research is exploratory in nature and extends to a number of organisational security networks in the field of counter-terrorism in Australia. While it is anticipated that the findings will be relevant in a variety of contexts, further research is required to advance our knowledge of the implications and properties of informal social networks within defined network boundaries.

The findings suggest that the functioning of security networks is likely to be highly dependent on the underlying social relationships between network members. This has practical implications for those responsible for designing and managing security networks.

The paper calls attention to a very understudied topic by focusing on the dynamics of informal ties and interpersonal trust within organisational security networks.

This paper aims to investigate the extent professionals from the vocational sector are networked individuals. The authors explore how professionals use their personal networks to engage in a wide variety of learning activities and examine what social mechanisms influence professionals’ agency to form personal informal learning networks.

This study applied a mixed-method approach to data collection. Social network data were gathered among school professionals working in the vocational sector. Ego-network analysis was performed. A total of 24 in-depth, semi-structured, qualitative interviews were analyzed.

This study found that networked individualism is not represented to its full potential in the vocational sector. However, it is important to form informal learning ties with different stakeholders because all types of informal learning ties serve different learning purposes. The extent to which social mechanisms (i.e. proximity, trust, level of expertise and homophily) influence professionals’ agency to form informal learning ties differs depending on the stakeholder with whom the informal learning ties are formed.

This study excludes the investigation of social mechanisms that shape learning through more impersonal virtual learning resources, such as social media or expert forums. Moreover, the authors only included individual- and dyadic-level social mechanisms.

By investigating the social mechanisms that shape informal learning ties, this study provides insights how professionals can be stimulated to build rich personal learning networks in the vocational sector.

The authors extend earlier research with in-depth information on the different types of learning activities professionals engage in in their personal learning networks with different stakeholders. The ego-network perspective reveals how different social mechanisms influence professionals’ agency to shape informal learning networks with different stakeholders.

Traditionally, urban informality has been discussed in terms of housing and markets, usually along the periphery of urban areas where there is disinvestment and decline. This article looks at urban informality through the lens of informal fresh food retail throughout the city of Mumbai, India. In India, fresh produce has traditionally been sold in informal street markets comprising vendors that operate through carts and make-shift stalls set-up on the streets. This article aims to assess the conditions surrounding fresh produce retail that fuel its informality.

This study uses a mixed methods approach by spatially analyzing the location of informal fresh food vendors in ArcGIS, developing a qualitative analysis of the level of proliferation of this network through interviews conducted with vendors and conducting surveys of residents' access patterns and purchasing habits for fresh produce in the city.

Results from this study indicate that the role of density, transportation systems, domestic/household structure, cultural traditions and a bureaucratic system rife with its own challenges have resulted in a distinct infrastructure of food retail networks that has harvested forms of inequalities and injustices that inherently fuel this informal economy.

There is no published study to date that has been done to spatially assess the informal food network in any dense city in India, let alone Mumbai to date. Urban informality, by its nature, is hard to capture, and yet this study takes a holistic view of the food systems in Mumbai, by addressing the location, supply (through vendor interviews) and demand factors (through resident surveys).

Through utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal sectors. Plus, empirically assess the impact of social capital constructs on the national rates of entrepreneurship.

Adopting a regression-oriented methodology, partial least squares (PLS), the study used a sample comprising 50 nations. National rates of registered and nonregistered business creation were utilized as endogenous variables. To determine the indigenous variables, constructs of social capital were measured which is consistent with the World Value Survey (WWS).

The results of this study show that in the formal and the informal sectors, social networking enables business creation with varying levels of impact. It establishes that institutional trust has a negative effect on informal business creation and a positive effect on business registration; interpersonal trust drives entrepreneurship in the informal sector but has less impact on business registration; norms of trustworthiness are related to business registration than informal business creation.

The findings of this research have theoretical and practical implications. They stimulate academic debate on the application of social capital constructs at the national level. The indications that social capital promotes business formation in both the informal and formal sectors can influence entrepreneurship policy development in many countries.

The originality of the results of this study lies in how it conceptualizes social capital as having direct impact on business creation in the informal vs formal sector. Thus, the findings elevated the conceptualization of social capital to the national level thereby enhancing knowledge on the entrepreneurship process as well as developmental economics.

This study aims to demonstrate the importance of organizational networks in organizational performance is relatively rich; less understood are processes in organizational networking that entrepreneurs and organizations use in making sense of rapidly changing contexts for organizational performance.

This study conducts an exploratory organizational-level narrative analysis into firms’ experiences in two major emerging markets (EMs), namely, Russia and India – to identify organizational networking processes in the midst of institutional upheavals. The study is based on in-depth case studies of firms in EMs sourced from interview data from senior management and consolidated with secondary data.

The authors find that initially firms rely on informal networks (including blat/svyazi and jaan-pehchaan/jan-pehchan) and later formal (in the form of bureaucratic followed by proprietary) networks to make sense of the changes and uncertainties in turbulent environments. The authors also demonstrate the cyclical nature of strategic sensemaking in the process of developing organizational networks for performance.

The study has a number of theoretical and practical contributions. First, it extends the well-established business networking construct to a more inclusive organizational networking construct. Second, it demonstrates that sensemaking is dependent on interorganizational networking from the outset and throughout the growth of an organization in turbulent markets – from informal to formal bureaucratic and proprietary networks. Finally, this study is unique in documenting the entire process of sensemaking from scanning to performance as well as successfully demonstrating the cyclical nature of sensemaking.