Social capital among corporate upper echelons and its impacts on executive promotion and firm performance /
This dissertation aims to build a foundation of both theory and evidence on (1) the effect of social capital possessed by individual managers on their likelihood of promotion to the next level, and (2) the effect of senior executive social capital, at the group or aggregate level, on firm performanc...
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| Format: | Thesis Book |
| Language: | English |
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[Place of publication not identified] :
[publisher not identified] ;
2001.
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| Subjects: | |
| Online Access: | http://proxy.library.tamu.edu/login?url=http://proquest.umi.com/pqdweb?did=725905871&sid=1&Fmt=2&clientId=2945&RQT=309&VName=PQD |
| Summary: | This dissertation aims to build a foundation of both theory and evidence on (1) the effect of social capital possessed by individual managers on their likelihood of promotion to the next level, and (2) the effect of senior executive social capital, at the group or aggregate level, on firm performance. Three properties of executive social capital were examined regarding their impacts on the likelihood of promotion. These were the strength of tie to the CEO, the internal network size, and the external social capital. In addition, two properties of top management group social capital were examined regarding their impacts on firm performance. These were the internal network density and the external network size. The theory and hypotheses developed were tested by using a sample of top managers in large, publicly traded Korean companies from 1990 through 1999. Empirical results of the promotion study support the major hypotheses that both internal and external dimensions of executive social capital are important in determining the likelihood of promotion. While strength of the tie to the CEO and external social capital were positively associated with the likelihood of promotion, internal network size was found to have an inverted U-shape relationship with the likelihood of promotion. The results also revealed a moderating effect of firm sales growth rate on the relationship between external social capital and the likelihood of promotion. The findings from the analysis of group level social capital and its impacts on firm performance also support the major hypotheses that both top management group internal network density and external network size influence firm performance. Internal network density, in particular, was found to have an inverted U-shape relationship with firm performance, suggesting that too dense an internal network can be detrimental to the organization. The analyses also revealed substantial moderating effects for environmental instability as a moderator in the internal network density-firm performance relationship. This study provides an important managerial implication that managers should consider maintaining moderate levels of internal network density and high levels of external social capital in their top management group, in order to improve firm performance. |
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| Item Description: | Vita. "Major Subject: Management". |
| Physical Description: | xii, 183 leaves : illustrations ; 28 cm. Issued also on microfiche from University Microfilm Inc. |
| Bibliography: | Includes bibliographical references (leaves 161-177). |