Abstract

This paper studies the effect of external managerial social networks on strategic flexibility and organisational learning, considering three groups of firms (non-quality management (QM) firms, ISO firms and total quality management (TQM) firms). At present, there are a wide variety of alternatives for managing quality in organisations, such as ISO standards and the European Foundation for Quality Management model. Thus, different alternatives will influence the external social networks differently, affecting strategic flexibility and organisational learning, as the literature on external social networks suggests that they can affect strategic flexibility and organisational learning positively. Through a comparative analysis of variance and stepwise regressions, we observed that external social networks affect strategic flexibility and organisational learning positively, primarily based on the greater size of the networks. On the other hand, we found that depending on the kind of QM initiative implemented in the organisation, other effects vary. For example, in organisations without QM, the range of external social networks influences strategic flexibility negatively, whereas in organisations with ISO standards, this negative effect disappears. In organisations with TQM, we found the positive effect of both size and strength of relations on the networks. For organisational learning, a negative relationship was found between organisational capability and network range for the non-QM firm group. These relationships turned out to be positive for the TQM firm group. This paper includes these and other conclusions, as well as future lines of research.

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