Managerial Networks and Exploration in a Professional Service Firms

Michelle Rogan, Louise Mors

    Research output: Working paperResearch

    Abstract

    A firm's growth and survival depends on the ability of its managers to explore for new business and knowledge; yet, exploration is challenging for most large, established firms. Extending prior research into networks and exploration, we propose that a key characteristic of managers' external networks - the extent to which their networks include relationships built using predominately individual rather than firm resources - is positively related to managers' abilities to explore for new business and knowledge in large firms. We propose that networks with more individual ties provide more diverse knowledge, enable greater autonomy, and ease access to resources from contacts; hence facilitating exploration. Analysis of an original dataset of external networks of 77 senior managers in a large global consulting firm provides support for our arguments. We find that individual ties are positively related to exploration and furthermore, that the positive (negative) relationship between sparse (dense) networks and exploration increases with the number of individual ties in managers' networks.
    A firm's growth and survival depends on the ability of its managers to explore for new business and knowledge; yet, exploration is challenging for most large, established firms. Extending prior research into networks and exploration, we propose that a key characteristic of managers' external networks - the extent to which their networks include relationships built using predominately individual rather than firm resources - is positively related to managers' abilities to explore for new business and knowledge in large firms. We propose that networks with more individual ties provide more diverse knowledge, enable greater autonomy, and ease access to resources from contacts; hence facilitating exploration. Analysis of an original dataset of external networks of 77 senior managers in a large global consulting firm provides support for our arguments. We find that individual ties are positively related to exploration and furthermore, that the positive (negative) relationship between sparse (dense) networks and exploration increases with the number of individual ties in managers' networks.
    LanguageEnglish
    Place of PublicationFontainebleau
    PublisherINSEAD
    Number of pages44
    DOIs
    StatePublished - Aug 2016
    SeriesINSEAD Working Paper
    Number2016/87/EFE

    Keywords

    • Exploration
    • Innovation
    • Firm performance
    • Networks
    • Network content
    • Network structure
    • New business development
    • New knowledge development
    • Professional service firms
    • Consulting firms
    • Corporate entrepreneurship

    Cite this

    Rogan, M., & Mors, L. (2016). Managerial Networks and Exploration in a Professional Service Firms. Fontainebleau: INSEAD. INSEAD Working Paper, No. 2016/87/EFE, DOI: 10.2139/ssrn.2873511
    Rogan, Michelle ; Mors, Louise. / Managerial Networks and Exploration in a Professional Service Firms. Fontainebleau : INSEAD, 2016. (INSEAD Working Paper; No. 2016/87/EFE).
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    Managerial Networks and Exploration in a Professional Service Firms. / Rogan, Michelle; Mors, Louise.

    Fontainebleau : INSEAD, 2016.

    Research output: Working paperResearch

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    Rogan M, Mors L. Managerial Networks and Exploration in a Professional Service Firms. Fontainebleau: INSEAD. 2016 Aug. Available from, DOI: 10.2139/ssrn.2873511