Social Tie Heterogeneity and Firms’ Networking Strategy

Abstract

The social ties of the owners, directors, and managers of firms have cross-level effects on firms’ network development. Firms can develop affiliations with a business group and connections across business groups. We expand the theoretical focus of Mani and Durand’s examination of the family and community ties of firm leaders and their impact on firms’ business group networks. We discuss the relational content heterogeneity of those ties and the associated logic in developing a firm’s networking strategy. Thus, we suggest alternative developmental processes for a firm’s network development strategy.