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Article
Publication date: 31 December 2021

Scott DuHadway, Carlos Mena and Lisa Marie Ellram

Supply chain fraud is a significant global concern for firms, consumers and governments. Evidence of major fraud events suggests the role of supply chain structures in enabling…

Abstract

Purpose

Supply chain fraud is a significant global concern for firms, consumers and governments. Evidence of major fraud events suggests the role of supply chain structures in enabling and facilitating fraud, as they often involve several parties in complicated networks designed to obfuscate the fraud. This paper identifies how the structural characteristics of supply chains can play an important role in enabling, facilitating and preventing fraud.

Design/methodology/approach

The research follows a theory elaboration approach. The authors build on structural holes theory in conjunction with a multiple case study research design to identify new concepts and develop propositions regarding the role of network structure on supply chain fraud.

Findings

This research shows how structural holes in a supply chain can create advantages for unscrupulous firms, a role we call tertius fraudans, or the cheating third. This situation is exacerbated by structural ignorance, which refers to the lack of knowledge about structural connections in the network. Both structural holes and structural ignorance can create information gaps that facilitate fraud, and the authors propose solutions to detect and prevent this kind of fraud.

Originality/value

This paper extends structural holes theory into the domain of fraud. Novel concepts including tertius fraudans, structural ignorance and bridge collapse are offered, alongside a series of propositions that can help understand and manage structural supply chain fraud.

Details

International Journal of Operations & Production Management, vol. 42 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 9 August 2011

Ren Lu and Torger Reve

Understanding China's economic success requires insights into its peculiar guanxi‐based market. Many scholars are confused about how to apply Western network theories to the guanxi

1089

Abstract

Purpose

Understanding China's economic success requires insights into its peculiar guanxi‐based market. Many scholars are confused about how to apply Western network theories to the guanxi‐based Chinese market. This paper aims to contribute to this comprehensive topic by theoretically exploring the differences among three fundamental network concepts: guanxi; structural hole; and closure.

Design/methodology/approach

Following Heide, the present paper categorises networks into three dimensions: network initiation, network maintenance and network termination, each based on different time phases. The three fundamental network concepts in every dimension are compared, laying out their similarities and dissimilarities in detail.

Findings

Although each of the three networks are initiated either naturally or artificially, guanxi is closely embedded in Chinese institutions. Unlike structural hole and closure, which can be applied at any level, guanxi is a special relation that only exists at the individual level. Structural hole and closure highlight the structures of the networks that bring them various benefits and constraints. Such merits are not evident in guanxi, in which favour exchange plays a crucial role in connecting entities. In addition, guanxi has special rules that affect the strength of ties.

Originality/value

The purpose of this paper is to articulate the differences among guanxi, structural hole and closure. The systematic framework provides a platform to scholars interested in applying the Western network theory to guanxi‐based markets. The study work also provides new insights to non‐Chinese actors doing business in China.

Details

Journal of Strategy and Management, vol. 4 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 28 February 2023

Jiayuan Liu and Xiaoyu Xi

This study aims to theorize and empirically examine how guanxi in Chinese collectivistic culture affects entrepreneurs to leverage the structural holes they occupy when it comes…

Abstract

Purpose

This study aims to theorize and empirically examine how guanxi in Chinese collectivistic culture affects entrepreneurs to leverage the structural holes they occupy when it comes to promoting knowledge transfer.

Design/methodology/approach

To examine the hypotheses, this study used a mixed-methods research approach where quantitative questionnaires and social network analyses were used through 365 Chinese entrepreneurs, and qualitative semistructured interviews were conducted through 50 Chinese entrepreneurs.

Findings

In a Chinese entrepreneur’s guanxi network, structural holes will impede knowledge transfer among network members, but guanxi will moderate this impeding effect.

Research limitations/implications

By revealing how “structural hole controllers” become “structural hole fillers” under the moderating influence of guanxi in Chinese collectivistic culture, this study recognizes the different roles that persons who occupy a structural hole play in different situations, which advances structural hole theory. In addition, by exploring how entrepreneurs orchestrate these structural holes to create a strong guanxi network that can be infinitely extended, this study reveals a means to achieve both advantages of bonding and bridging social capital simultaneously, which generates a theoretical contribution to social capital integration.

Practical implications

This study suggests Chinese entrepreneurs to cultivate guanxi to improve their needs in decision-making by giving renqing, returning renqing, earning mianzi and giving mianzi.

Originality/value

By showing how Chinese entrepreneurs leverage their guanxi and structural holes to facilitate knowledge transfer, this study identifies the critical entrepreneurial behavior that promotes business development, thereby contributing to the literature of knowledge management, entrepreneurship and social network.

Details

Journal of Knowledge Management, vol. 27 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

Book part
Publication date: 24 March 2017

Marc-David L. Seidel

In this article, I propose a theory of network opportunity emergence. The core of the argument is that as an overall industry network structure becomes centralized, opportunities…

Abstract

In this article, I propose a theory of network opportunity emergence. The core of the argument is that as an overall industry network structure becomes centralized, opportunities emerge for new entrants. As the institutional environment evolves toward a centralized network flow structure, innovators can identify newly emerged rich resource niches that serve as the perfect breeding ground for an entrepreneurial start-up. While the framework is an aggregate level conceptualization of market opportunities, it also identifies specific actionable opportunities at a very micro level. Examples from the networks of the airline industry illustrate the logic. I conclude by discussing the innovation and entrepreneurship implications for a wide variety of industries and network tie types, calling for utilization of the framework to answer a broad variety of research questions.

Article
Publication date: 29 September 2021

Pengfei Han, Haifeng Wang and Peihua Fan

Along with the important impact of green strategies on firm survival and performance improvement, its dark side likewise requires attention. By integrating network evolution theory

Abstract

Purpose

Along with the important impact of green strategies on firm survival and performance improvement, its dark side likewise requires attention. By integrating network evolution theory with the literature on green supply chain management, this study proposes a theoretical framework consisting of green strategies, network conduct (cooperation length), network structure (structural holes) and relationship maintenance. The purpose of this study is to indicate how green strategies can affect relationship maintenance on the basis of a network evolution perspective, and demonstrate how this effect can be influenced by cooperation length and structural holes.

Design/methodology/approach

Based on a sample of 122 matched pairs of the upstream and downstream supply chain from the Chinese paper-making industry, which is in urgent requirement of green strategies due to high pollution and resource consumption.

Findings

This study theoretically and empirically indicates that green strategies may have a positive impact on relationship maintenance. In addition, this effect can be positively moderated by cooperation length, but negatively moderated by structural holes.

Originality/value

This study uncovers the impact of green strategies on relationship maintenance by proposing a network evolution perspective, which could solve its conflicting effects in a specific context and move extant research a step forward.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 April 2022

Yilin Zhang, Changyuan Gao and Jing Wang

This study aims to explore the relationship between financing constraints and the innovation performance of Internet enterprises in the cross-border innovation cooperation…

Abstract

Purpose

This study aims to explore the relationship between financing constraints and the innovation performance of Internet enterprises in the cross-border innovation cooperation network. The study also analyzes the moderating effect of the location of the cross-border innovation cooperation network.

Design/methodology/approach

The authors selected patent data, related transaction data and other data of A-share listed companies on Shanghai and Shenzhen stock exchanges from 2014 to 2019. The generalized moment estimation method of instrumental variables (IV-GMM) method was used to analyze the relationship between financing constraints and the innovation performance of Internet firms and the moderating effect of the cross-border innovation cooperation network location. The threshold value of the moderating effect of the network structure hole was calculated with the threshold model.

Findings

The empirical results show a significant inverted U-shaped relationship between financing constraints and the innovation performance in the cross-border innovation cooperation network of Internet enterprises. Network centrality positively moderates this relationship. There is a threshold for the adjustment effect of network-structural holes, and the adjustment intensity of structural holes changes before and after the threshold.

Originality/value

This study provides a new perspective for Internet firms in innovation cooperation networks to alleviate the negative impact of financing constraints on innovation performance. The inverted U-shaped relationship between financing constraints and the innovation performance of Internet enterprises is in two stages. The moderating range of network centrality and the structural hole besides the threshold of the moderating effect of a structural hole are detailed.

Details

European Journal of Innovation Management, vol. 26 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 10 November 2020

Minrui Han, Bing Sun and Xiao Su

This study aims to explore the influence of a region’s network location characteristics and indirect connections on its innovation capability. The aim is to assist regions in…

Abstract

Purpose

This study aims to explore the influence of a region’s network location characteristics and indirect connections on its innovation capability. The aim is to assist regions in different network locations to use innovation resources to improve their innovation capabilities more efficiently.

Design/methodology/approach

This paper represents the Chinese regional innovation network using the gravity model. A theoretical framework is developed to explore the relationships between a region’s innovation capability and its network location. Hypotheses are tested using hierarchical regressions.

Findings

First, this paper finds that a region’s network centrality can promote its innovation capability. Second, a structural hole can positively adjust the relationship between a region’s centrality and innovation capability. Third, a region’s indirect connections can inhibit its innovation capability while exhibiting a U-shaped relationship in moderating centrality and innovation capability.

Originality/value

This study uses a multi-index system to construct an innovation network covering 29 regions in China. This network represents the innovation cooperation and overall situation of innovation in China. The paper is one of the first attempts at investigating the relationship between regional network locations and innovation capability. It is also the first attempt at testing the influence of indirect connections on a region’s innovation capability. The findings provide a new perspective on the factors influencing regional innovation capacity and a new way for regions to improve their innovation capability.

Details

Chinese Management Studies, vol. 15 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 5 February 2021

Jiayuan Liu and Jianzhou Yan

This study examines the relationships between structural holes, guanxi and knowledge sharing among groups of stakeholders within a Chinese destination network.

Abstract

Purpose

This study examines the relationships between structural holes, guanxi and knowledge sharing among groups of stakeholders within a Chinese destination network.

Design/methodology/approach

This study conducted surveys, social network analysis and semi-structured interviews to gather data from the stakeholders of a popular Chinese tourist destination to test its hypotheses.

Findings

Knowledge sharing within the destination network was impeded by structural holes but facilitated by guanxi. Furthermore, the impeding effect of structural holes on knowledge sharing is alleviated by guanxi.

Originality/value

This study illustrates the ways that stakeholders exploit structural holes and guanxi to promote knowledge sharing, and thus offers novel insights into how destination network structures affect the efficacy of stakeholders when it comes to sharing knowledge and promoting their destination.

Details

Journal of Organizational Change Management, vol. 35 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 1 April 2014

Meng Cai, Haifeng Du, Chen Zhao and Wei Du

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…

1724

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.

Details

Chinese Management Studies, vol. 8 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 28 February 2023

Jiayuan Liu

This study aims to explore how stakeholders leverage their guanxi and structural holes to promote knowledge mobilization to increase the performance of sci-tech achievement…

Abstract

Purpose

This study aims to explore how stakeholders leverage their guanxi and structural holes to promote knowledge mobilization to increase the performance of sci-tech achievement transformation.

Design/methodology/approach

This study conducted questionnaires, a social network analysis and semistructured interviews to examine its hypotheses by gathering data from a university and an enterprise in China.

Findings

Structural holes impede knowledge mobilization among stakeholders in their network, but guanxi moderates this impeding effect. In addition, knowledge mobilization promotes transformation performance.

Originality/value

By developing a mechanism to illustrate how stakeholders strategically leverage their guanxi and structural holes to affect the efficacy of knowledge mobilization to increase transformation performance, we reveal how stakeholders interact to co-create values for innovation, thereby contributing to the innovation and knowledge management literature.

Details

Chinese Management Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

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