Organizational capabilities and business performance: When and how does the dark side of managerial ties matter? |
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| Institution: | 1. School of Communication, Journalism and Marketing, Massey University Albany Campus, Private Bag 102 904, North Shore, Auckland 0745, New Zealand;2. Department of Marketing & Quantitative Analysis, College of Business, University of New Haven, West Haven, CT 06516, USA;3. College of Management, National Sun-yat Sen University, 70 Lien-Hai Road, Kaohsiung 804, Taiwan, ROC;4. Department of Marketing, College of Business, City University of Hong Kong, Kowloon Tong, Hong Kong;1. University of Birmingham, Department of Marketing, Birmingham Business School, Edgbaston, Birmingham B15 2TT, United Kingdom;2. Foundation for Management Education, Unit C, 33/F, Tower 6, Harbour Place, Hung Hom, Kowloon, Hong Kong;1. School of Communication, Journalism and Marketing, Massey University Albany Campus, Private Bag 102 904, North Shore, Auckland 0745, New Zealand;2. Department of Marketing, City University of Hong Kong, Kowloon Tong, Hong Kong;3. National Sun-Yat Sen University, College of Management, 70 Lien-Hai Road, Kaohsiung 804, Taiwan, ROC;1. College of Law & Business, 26 Ben Gurion St, Ramat Gan, P.O. Box 852, Bnei Brak 51108, Israel;2. Sheffield Hallam Business School, Sheffield Business School, City Campus, Sheffield, UK;3. Jerusalem College of Technology, Department of Electronics, P.O. Box 16031, Jerusalem, Israel;4. Hang Seng Management College, Hong Kong;5. South Western University of Finance and Economics, Chengdu, Sichuan Province, China |
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| Abstract: | Though the dark side of business-to-business relationships exists at both the firm and personal level, recent research evidence suggests that the theoretical conceptualization and empirical investigation concerning the latter is still under development. Building upon theoretical perspectives of organizational capability, organizational networking and social capital theories, this study investigates the boundary conditions of personalized business-to-business relationships (managerial ties) on business performance. Specifically formulated hypotheses are tested using the perceptions of senior executives in 137 Taiwanese firms operating in a variety of industrial sectors. Our study extends extant literature by revealing that the dark side of managerial ties is evident in the perceived management capability-political ties-performance and technology capability-business ties-performance interplays. More importantly our survey results are corroborated by evidence from interview results with twelve senior executives. Such findings collectively demonstrate the dark side of political ties (governmental interference in employment, blockage of information flow as well as conflicts of interest), and business ties (reciprocal obligations, time consuming factors and maintenance costs). |
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