IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v22y2011i1p42-59.html
   My bibliography  Save this article

Getting a Bonus: Social Networks, Performance, and Reward Among Commercial Bankers

Author

Listed:
  • Mark S. Mizruchi

    (Department of Sociology, University of Michigan, Ann Arbor, Michigan 48109)

  • Linda Brewster Stearns

    (Department of Sociology, Southern Methodist University, Dallas, Texas 75275)

  • Anne Fleischer

    (Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

Abstract

Research on the effects of social networks on individual status attainment has exploded in recent years, but the results remain equivocal, varying across network structures, types of ties, and outcome variables. The focus in this literature has been on two primary outcomes: performance benefits and rewards (including promotion and compensation). These two types of outcomes have often been conflated, however, despite the fact that high levels of one do not guarantee high levels of the other. We examined the effects of job performance, network tie strength, and network structures on the size of the year-end bonuses received by 71 relationship officers in a major, multinational commercial bank. We found that in networks based on information acquisition, both strong ties and sparse networks are positively associated with high bonuses, as is the combination of the two. In networks based on approval and support for one's deals, neither tie strength nor density predicts bonus size, but the benefits of strong ties increase as network density increases. Our results demonstrate the importance of distinguishing networks based on collegial relations from those based on authority, as well as the importance of distinguishing the network factors that improve performance from those that generate favorable evaluations independent of performance.

Suggested Citation

  • Mark S. Mizruchi & Linda Brewster Stearns & Anne Fleischer, 2011. "Getting a Bonus: Social Networks, Performance, and Reward Among Commercial Bankers," Organization Science, INFORMS, vol. 22(1), pages 42-59, February.
    • Handle: RePEc:inm:ororsc:v:22:y:2011:i:1:p:42-59
    DOI: 10.1287/orsc.1090.0516
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1090.0516
    Download Restriction: no
    File URL: https://libkey.io/10.1287/orsc.1090.0516?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Simon Rodan & Charles Galunic, 2004. "More than network structure: how knowledge heterogeneity influences managerial performance and innovativeness," Strategic Management Journal, Wiley Blackwell, vol. 25(6), pages 541-562, June.
    2. Bilian Ni Sullivan & Pamela Haunschild & Karen Page, 2007. "Organizations Non Gratae? The Impact of Unethical Corporate Acts on Interorganizational Networks," Organization Science, INFORMS, vol. 18(1), pages 55-70, February.
    3. Manju K. Ahuja & Dennis F. Galletta & Kathleen M. Carley, 2003. "Individual Centrality and Performance in Virtual R& D Groups: An Empirical Study," Management Science, INFORMS, vol. 49(1), pages 21-38, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zou, Xi & Ingram, Paul, 2013. "Bonds and boundaries: Network structure, organizational boundaries, and job performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 120(1), pages 98-109.
    2. Adam M. Kleinbaum, 2018. "Reorganization and Tie Decay Choices," Management Science, INFORMS, vol. 64(5), pages 2219-2237, May.
    3. Andersen, Kristina Vaarst, 2013. "The problem of embeddedness revisited: Collaboration and market types," Research Policy, Elsevier, vol. 42(1), pages 139-148.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barthélemy Chollet, 2008. "L’analyse des réseaux personnels dans les organisations:quelles données utiliser?," Revue Finance Contrôle Stratégie, revues.org, vol. 11(1), pages 105-130, March.
    2. Guan, Jiancheng & Yan, Yan & Zhang, Jing Jing, 2017. "The impact of collaboration and knowledge networks on citations," Journal of Informetrics, Elsevier, vol. 11(2), pages 407-422.
    3. Liu Li & Chaoying Tang, 2020. "How Does Inter-Organizational Cooperation Impact Organizations’ Scientific Knowledge Generation? Evidence from the Biomass Energy Field," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    4. Taiye Luo & Zhengang Zhang, 2021. "Multi-network embeddedness and innovation performance of R&D employees," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 8091-8107, September.
    5. Osmar Arandia Pérez & Luis Portales Derbéz, 2012. "Social Networks: A strategy for non-profit organizations," Revista Observatorio Calasanz, Universidad Cristobal Colon, Dpto. de Investigacion y Posgrado, vol. 3(6), pages .362-378, Febrero.
    6. Javier Martínez-del-Río & José Céspedes-Lorente, 2014. "Competitiveness and Legitimation: The Logic of Companies going Green in Geographical Clusters," Journal of Business Ethics, Springer, vol. 120(1), pages 131-146, March.
    7. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2008. "Dealing with Virtual R&D Teams in New Product Development," MPRA Paper 27120, University Library of Munich, Germany, revised Oct 2008.
    8. Jianyu Zhao & Yining Huang & Xi Xi & Shanshan Wang, 2021. "How knowledge heterogeneity influences business model design: mediating effects of strategic learning and bricolage," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 889-919, June.
    9. Harpreet Singh & David Kryscynski & Xinxin Li & Ram Gopal, 2016. "Pipes, pools, and filters: How collaboration networks affect innovative performance," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1649-1666, August.
    10. Dost Mir & Arshad Muhammad & Afsar Bilal, 2018. "The Influence of Entrepreneurial Orientation on Types of Process Innovation Capabilities and Moderating Role of Social Capital," Entrepreneurship Research Journal, De Gruyter, vol. 8(4), pages 1-15, October.
    11. Fu-Sheng Tsai & Gayle Baugh & Shih-Chieh Fang & Julia Lin, 2014. "Contingent contingency: Knowledge heterogeneity and new product development performance revisited," Asia Pacific Journal of Management, Springer, vol. 31(1), pages 149-169, March.
    12. Hao, Bin & Feng, Yanan, 2018. "Leveraging learning forces in asymmetric alliances: Small firms’ perceived power imbalance in driving exploration and exploitation," Technovation, Elsevier, vol. 78(C), pages 27-39.
    13. Llopis, Oscar & D'Este, Pablo & McKelvey, Maureen & Yegros, Alfredo, 2022. "Navigating multiple logics: Legitimacy and the quest for societal impact in science," Technovation, Elsevier, vol. 110(C).
    14. Gerald C. Kane & Maryam Alavi, 2008. "Casting the Net: A Multimodal Network Perspective on User-System Interactions," Information Systems Research, INFORMS, vol. 19(3), pages 253-272, September.
    15. Soojung Oh & Young U. Ryu & Hongsuk Yang, 2019. "Interaction effects between supply chain capabilities and information technology on firm performance," Information Technology and Management, Springer, vol. 20(2), pages 91-106, June.
    16. Gupeng Zhang & Xiao Wang & Hongbo Duan, 2020. "Obscure but important: examining the indirect effects of alliance networks in exploratory and exploitative innovation paradigms," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 1745-1764, September.
    17. Vandor, Peter & Franke, Nikolaus, 2016. "See Paris and… found a business? The impact of cross-cultural experience on opportunity recognition capabilities," Journal of Business Venturing, Elsevier, vol. 31(4), pages 388-407.
    18. Soda, Giuseppe & Zaheer, Akbar & Sun, Xiaoming & Cui, Wentian, 2021. "Brokerage evolution in innovation contexts: Formal structure, network neighborhoods and knowledge," Research Policy, Elsevier, vol. 50(10).
    19. Yue Wang & Ning Li & Bin Zhang & Qian Huang & Jian Wu & Yang Wang, 2023. "The effect of structural holes on producing novel and disruptive research in physics," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(3), pages 1801-1823, March.
    20. Lei Xu & Ronggui Ding & Lei Wang, 2022. "How to facilitate knowledge diffusion in collaborative innovation projects by adjusting network density and project roles," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(3), pages 1353-1379, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ororsc:v:22:y:2011:i:1:p:42-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.