Academy Of Management Journal2003 Vol
Academy of Management Journal
2003, Vol. 46, No. 6, 740–751.
STRATEGIC HUMAN RESOURCE PRACTICES, TOP MANAGEMENT
TEAM SOCIAL NETWORKS, AND FIRM PERFORMANCE: THE ROLE
OF HUMAN RESOURCE PRACTICES IN CREATING
ORGANIZATIONAL COMPETITIVE ADVANTAGE
CHRISTOPHER J. COLLINS
Cornell University
KEVIN D. CLARK
Villanova University
In this article, we begin to explore the black box between human resources (HR) practices and firm performance. Specifically, we examine the relationships between a set of network-building HR practices, aspects of the external and internal social networks of top management teams, and firm performance. Results from a field study with 73 high-technology firms showed that the relationships between the HR practices and firm performance (sales growth and stock growth) were mediated through their top managers’ social networks.
bulent environmental conditions place a premium on both the speed and the quality of top management team (TMT) decision making and firm action
(Eisenhardt, 1989). A key factor in a TMT’s ability to achieve both speed and quality is the use of real-time information (Eisenhardt, 1989). The social networks of top managers, defined as the systems of relationships top managers have with employees and other actors outside of their organization, are a chief source of timely and relevant information on the state of both the external environment and the organization. Thus, the distinct information capabilities created though different
TMT networks— both external networks and internal networks—may provide a competitive advantage for high-tech firms (Barney, 1991).
In this article, we argue that TMT social networks will be a source of competitive advantage in hightechnology firms. Specifically, we use the information-processing and “boundary-spanning” literatures to develop hypotheses linking TMT social networks and firm performance. Further, we argue that firms may systematically develop and sustain social networks through supportive HR
2003, Vol. 46, No. 6, 740–751.
STRATEGIC HUMAN RESOURCE PRACTICES, TOP MANAGEMENT
TEAM SOCIAL NETWORKS, AND FIRM PERFORMANCE: THE ROLE
OF HUMAN RESOURCE PRACTICES IN CREATING
ORGANIZATIONAL COMPETITIVE ADVANTAGE
CHRISTOPHER J. COLLINS
Cornell University
KEVIN D. CLARK
Villanova University
In this article, we begin to explore the black box between human resources (HR) practices and firm performance. Specifically, we examine the relationships between a set of network-building HR practices, aspects of the external and internal social networks of top management teams, and firm performance. Results from a field study with 73 high-technology firms showed that the relationships between the HR practices and firm performance (sales growth and stock growth) were mediated through their top managers’ social networks.
bulent environmental conditions place a premium on both the speed and the quality of top management team (TMT) decision making and firm action
(Eisenhardt, 1989). A key factor in a TMT’s ability to achieve both speed and quality is the use of real-time information (Eisenhardt, 1989). The social networks of top managers, defined as the systems of relationships top managers have with employees and other actors outside of their organization, are a chief source of timely and relevant information on the state of both the external environment and the organization. Thus, the distinct information capabilities created though different
TMT networks— both external networks and internal networks—may provide a competitive advantage for high-tech firms (Barney, 1991).
In this article, we argue that TMT social networks will be a source of competitive advantage in hightechnology firms. Specifically, we use the information-processing and “boundary-spanning” literatures to develop hypotheses linking TMT social networks and firm performance. Further, we argue that firms may systematically develop and sustain social networks through supportive HR
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