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Managerial ties, firm resources, and performance of cluster firms

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Abstract

Previous research has documented the relationship among managerial ties, firm resources, and performance in emerging economies such as China. While managerial ties may be embedded in a particular location, some of these ties may be non-location-bound. Therefore, for firms located within one geographically concentrated cluster, how do managerial ties and firm resources affect performance? Using data from 163 firms in two Chinese clusters, we demonstrate that managerial ties and firm resources—independently and in combination—help firms improve market performance. Results support the view that both network-centered strategies (utilizing managerial ties) and market-centered strategies (leveraging firm resources) are critical determinants of firm performance.

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Authors and Affiliations

  1. School of Business, Sun Yat-sen University, Guangzhou, 510275, China

    Shujun Zhang & Xinchun Li

Authors
  1. Shujun Zhang
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  2. Xinchun Li
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Correspondence to Shujun Zhang.

Additional information

This research was supported by the Foundation of the Ministry of Education of China (06JC630031), China National Philosophy and Social Science Foundation (07CJY008), National Natural Science Foundation of China (70472026, 70602018, 70732005), and a Grant of 985 projects (regional development and industrial organization) from Sun Yat-sen University. We thank Mike Peng (Editor-in-Chief) and two reviewers for editorial guidance. In developing this paper, we have benefited from helpful discussions with Jay Barney, Heli Wang, and Jilin Dai. The views expressed here are ours and do not necessarily represent those of the funding agencies.

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Zhang, S., Li, X. Managerial ties, firm resources, and performance of cluster firms. Asia Pac J Manage 25, 615–633 (2008). https://doi.org/10.1007/s10490-008-9090-7

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