Advice Tie Reallocation Under Organizational Turmoil: A Longitudinal Intra-Firm Network Study

Abstract

Drawing on both social network theory and social exchange theory, this study investigates how the hierarchical position of those constituting a firm’s discretionary advice network affects individual’s propensity to provide advice to others. Based on a unique field survey that captures the dynamics of organization downsizing, findings indicate that under enhanced organizational turmoil, new advice activity centers on advice provided to hierarchical equals, shifting away from a vertical orientation towards a horizontal advice orientation as organizational turmoil increases. Hierarchical popularity nor activity affects this relation, arguing for the direct effect of organization structure on advice giving activity within the firm. We discuss the implications of our findings on the literature of intra-organizational networks in the context of abrupt network disruption, contrasting pre and post network structure to a sudden downsizing event.