Strategic flexibility and change: The impact of social networks

Virginia Fernández-Pérez, María del Mar Fuentes-Fuentes and Ana Bojica

Journal of Management & Organization, 2012, vol. 18, issue 1, 2-15

Abstract: This paper examines 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 change perspective. External social networks can affect strategic flexibility positively. Previous experience with strategic change will influence external social networks differently, in ways that have repercussions for strategic flexibility. The data were gathered from surveys completed by the CEOs of 203 Spanish firms. The methodology used is regression analysis. We observe that external social networks affect strategic flexibility positively, primarily through the greater size of the networks. We also find that the effects vary if previously the organization is involved in a process of strategic change.

Date: 2012
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