Managerial social networks and strategic flexibility: the role of strategic orientation

Abstract

PurposeThis paper aims to examine how the characteristics of CEOs' social networks, such as the size of the network and the strength of the ties, influence strategic flexibility from a strategic orientation perspective. External social networks can affect strategic flexibility positively. Different orientations could have repercussions for the relationship between external social networks and strategic flexibility.Design/methodology/approachThe data came from surveys completed by the managers of 188 Spanish firms. The methodology used was regression analysis.FindingsThe authors observe that external social networks affect strategic flexibility positively, more strongly when the networks are greater in size. The sample was classified into three groups: conservative, intermediate and entrepreneurship firms. The authors find that other effects vary according to the kind of strategic orientation in the organization. Both findings support and extend social capital and network theory and flexibility literature.Research limitations/implicationsThe interviews were held with Spanish CEOs, and the character of the research was cross‐sectional. This could have implications for the generalizability of the findings.Originality/valueThe authors' results extend previous research not only by highlighting the importance of CEOs' social networks in driving strategic flexibility but also by indicating how different strategic orientations either enhance or inhibit this relationship.