IDEAS home Printed from https://ideas.repec.org/a/kap/asiapa/v41y2024i2d10.1007_s10490-023-09872-x.html
   My bibliography  Save this article

Performance feedback as a determinant of ego-network stability in collaboration networks

Author

Listed:
  • Jingbei Wang

    (Shandong University)

  • Yafei Nie

    (Northwestern Polytechnical University)

  • Min Guo

    (, Xi’an University of Posts and Telecommunications)

  • Hui Liu

    (Central South University)

Abstract

Collaboration networks are not intrinsically unstable and fragile, ego-network stability cannot be taken for granted. Extant research has highlighted the determinants of ego-network stability; nevertheless, it is still unclear how behavioral factors affect a firm’s ego-network stability in a collaboration network as a consequence of a decision-maker’s bounded rationality. Drawing from the behavioral theory of the firm and attention-based view, this paper explores how ego-network stability is affected by performance feedback and investigates the influence of CEOs’ information advantage and power on firms’ responses to performance feedback. Using longitudinal data on Chinese publicly listed firms in the pharmaceutical industry from 2007 to 2020, we find that the magnitude of a firm’s outperformance relative to its aspirations harms its ego-network stability. The magnitude of a firm’s underperformance relative to its aspirations has a U-shaped relationship with its ego-network stability. Moreover, CEOs’ social capital and power strengthen the negative relationship between the magnitude of a firm’s outperformance relative to its aspirations and its ego-network stability, and CEOs’ social capital flattens the U-shaped effect of the magnitude of a firm’s underperformance relative to its aspirations on its ego-network stability.

Suggested Citation

  • Jingbei Wang & Yafei Nie & Min Guo & Hui Liu, 2024. "Performance feedback as a determinant of ego-network stability in collaboration networks," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 789-821, June.
    • Handle: RePEc:kap:asiapa:v:41:y:2024:i:2:d:10.1007_s10490-023-09872-x
    DOI: 10.1007/s10490-023-09872-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10490-023-09872-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10490-023-09872-x?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. He, Lerong & Huang, Liying & Yang, Guangqing, 2021. "Invest in Innovation or Not? How Managerial Cognition and Attention Allocation Shape Corporate Responses to Performance Shortfalls," Management and Organization Review, Cambridge University Press, vol. 17(4), pages 815-850, October.
    2. Min Guo & Naiding Yang & Jingbei Wang & Yanlu Zhang, 2021. "Multi-dimensional proximity and network stability: the moderating role of network cohesion," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3471-3499, April.
    3. Gautam Ahuja & Giuseppe Soda & Akbar Zaheer, 2012. "The Genesis and Dynamics of Organizational Networks," Organization Science, INFORMS, vol. 23(2), pages 434-448, April.
    4. Roberto Fontana & Lionel Nesta, 2009. "Product Innovation and Survival in a High-Tech Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(4), pages 287-306, June.
    5. John Joseph & Vibha Gaba, 2015. "The fog of feedback: Ambiguity and firm responses to multiple aspiration levels," Strategic Management Journal, Wiley Blackwell, vol. 36(13), pages 1960-1978, December.
    6. Rong, Zhao & Wu, Xiaokai & Boeing, Philipp, 2017. "The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms," Research Policy, Elsevier, vol. 46(9), pages 1533-1551.
    7. Joel A. C. Baum & Kristina B. Dahlin, 2007. "Aspiration Performance and Railroads’ Patterns of Learning from Train Wrecks and Crashes," Organization Science, INFORMS, vol. 18(3), pages 368-385, June.
    8. Jingbei Wang & Naiding Yang, 2019. "Dynamics of collaboration network community and exploratory innovation: the moderation of knowledge networks," Scientometrics, Springer;Akadémiai Kiadó, vol. 121(2), pages 1067-1084, November.
    9. Zhang, Gupeng & Duan, Hongbo & Zhou, Jianghua, 2017. "Network stability, connectivity and innovation output," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 339-349.
    10. Isin Guler & Atul Nerkar, 2012. "The impact of global and local cohesion on innovation in the pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 33(5), pages 535-549, May.
    11. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
    12. Scott Johnson & Karen Schnatterly & Joel F. Bolton & Chris Tuggle, 2011. "Antecedents of New Director Social Capital," Journal of Management Studies, Wiley Blackwell, vol. 48(8), pages 1782-1803, December.
    13. Han Jiang & Albert A. Cannella Jr. & Jun Xia & Matthew Semadeni, 2017. "Choose to Fight or Choose to Flee? A Network Embeddedness Perspective of Executive Ship Jumping in Declining Firms," Strategic Management Journal, Wiley Blackwell, vol. 38(10), pages 2061-2079, October.
    14. Korcan Kavusan & Hans T. W. Frankort, 2019. "A behavioral theory of alliance portfolio reconfiguration: Evidence from pharmaceutical biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 40(10), pages 1668-1702, October.
    15. Steve Sauerwald & Zhiang (John) Lin & Mike W. Peng, 2016. "Board social capital and excess CEO returns," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 498-520, March.
    16. Laura B. Cardinal, 2001. "Technological Innovation in the Pharmaceutical Industry: The Use of Organizational Control in Managing Research and Development," Organization Science, INFORMS, vol. 12(1), pages 19-36, February.
    17. Seung Weon Yoo & Gun Lee & Jae Eun Shin & Jinbae Kim, 2021. "Firm performance and the adoption of a co-CEO structure: Evidence from Korea," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1351-1368, December.
    18. Elio Shijaku & Martin Larraza-Kintana & Ainhoa Urtasun-Alonso, 2020. "Network centrality and organizational aspirations: A behavioral interaction in the context of international strategic alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 813-828, July.
    19. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    20. Cynthia E. Devers & Todd Dewett & Yuri Mishina & Carrie A. Belsito, 2009. "A General Theory of Organizational Stigma," Organization Science, INFORMS, vol. 20(1), pages 154-171, February.
    21. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
    22. Marta A. Geletkanycz & Brian K. Boyd & Sydney Finkelstein, 2001. "The strategic value of CEO external directorate networks: implications for CEO compensation," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 889-898, September.
    23. Guan, Jiancheng & Zhao, Qingjun, 2013. "The impact of university–industry collaboration networks on innovation in nanobiopharmaceuticals," Technological Forecasting and Social Change, Elsevier, vol. 80(7), pages 1271-1286.
    24. Pierre Dussauge & Ulrich Wassmer, 2011. "Value Creation in Alliance Portfolios: The Benefits and Costs of Network Resource Interdependencies," Post-Print hal-00609489, HAL.
    25. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    26. Ranjay Gulati & Dovev Lavie & Harbir Singh, 2009. "The nature of partnering experience and the gains from alliances," Strategic Management Journal, Wiley Blackwell, vol. 30(11), pages 1213-1233, November.
    27. Katalin Takacs Haynes & Amy Hillman, 2010. "The effect of board capital and CEO power on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 31(11), pages 1145-1163, November.
    28. Ulrich Wassmer & Pierre Dussauge, 2011. "Value creation in alliance portfolios : The benefits and costs of network resource interdependencies," Post-Print hal-02313045, HAL.
    29. Lee Fleming & Olav Sorenson, 2004. "Science as a map in technological search," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 909-928, August.
    30. Pino G. Audia & Henrich R. Greve, 2006. "Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry," Management Science, INFORMS, vol. 52(1), pages 83-94, January.
    31. Brian K. Boyd, 1995. "CEO duality and firm performance: A contingency model," Strategic Management Journal, Wiley Blackwell, vol. 16(4), pages 301-312.
    32. Jiang, Xu & Li, Yuan & Gao, Shanxing, 2008. "The stability of strategic alliances: Characteristics, factors and stages," Journal of International Management, Elsevier, vol. 14(2), pages 173-189, June.
    33. Dovev Lavie, 2007. "Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry," Strategic Management Journal, Wiley Blackwell, vol. 28(12), pages 1187-1212, December.
    34. Powers, Joshua B. & McDougall, Patricia, 2005. "Policy orientation effects on performance with licensing to start-ups and small companies," Research Policy, Elsevier, vol. 34(7), pages 1028-1042, September.
    Full references (including those not matched with items on IDEAS)

    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. Bae, Joonhyung & Ozmel, Umit, 2024. "The interplay between product development failures and alliance portfolio properties in the formation of exploration versus exploitation alliances," Journal of Business Research, Elsevier, vol. 177(C).
    2. Martínez-Noya, Andrea & García-Canal, Esteban, 2021. "Innovation performance feedback and technological alliance portfolio diversity: The moderating role of firms’ R&D intensity," Research Policy, Elsevier, vol. 50(9).
    3. Vikas A. Aggarwal, 2020. "Resource congestion in alliance networks: How a firm's partners’ partners influence the benefits of collaboration," Strategic Management Journal, Wiley Blackwell, vol. 41(4), pages 627-655, April.
    4. Su, Taoyong & Yu, Yuzhu & Chen, Yongheng & Hou, Wanrong, 2023. "On or off: The triggering effect of underperformance duration on cooperative innovation," Technovation, Elsevier, vol. 126(C).
    5. Steffen Runge & Christian Schwens & Matthias Schulz, 2022. "The invention performance implications of coopetition: How technological, geographical, and product market overlaps shape learning and competitive tension in R&D alliances," Strategic Management Journal, Wiley Blackwell, vol. 43(2), pages 266-294, February.
    6. Hansin Bilgili & Jonathan L. Johnson & Tsvetomira V. Bilgili & Alan E. Ellstrand, 2022. "Research on social relationships and processes governing the behaviors of members of the corporate elite: a review and bibliometric analysis," Review of Managerial Science, Springer, vol. 16(8), pages 2285-2339, November.
    7. Castro, Ignacio & Casanueva, Cristóbal & Galán, José Luis, 2014. "Dynamic evolution of alliance portfolios," European Management Journal, Elsevier, vol. 32(3), pages 423-433.
    8. Hendriks, Guus & Slangen, Arjen H.L. & Heugens, Pursey P.M.A.R., 2024. "Country portfolio diversity and firms’ portfolio adjustment decisions: A behavioral perspective," International Business Review, Elsevier, vol. 33(4).
    9. Sarath Balachandran & Exequiel Hernandez, 2018. "Networks and Innovation: Accounting for Structural and Institutional Sources of Recombination in Brokerage Triads," Organization Science, INFORMS, vol. 29(1), pages 80-99, February.
    10. Cheng, Lulu & Xie, En & Fang, Junyi & Mei, Nan, 2022. "Performance feedback and firms’ relative strategic emphasis: The moderating effects of board independence and media coverage," Journal of Business Research, Elsevier, vol. 139(C), pages 218-231.
    11. Erk P. Piening & Ferdinand Thies & Michael Wessel & Alexander Benlian, 2021. "Searching for Success—Entrepreneurs’ Responses to Crowdfunding Failure," Entrepreneurship Theory and Practice, , vol. 45(3), pages 626-657, May.
    12. Koval, Mariia & Iurkov, Viacheslav & Benito, Gabriel R.G., 2024. "The interplay of international alliance and subsidiary portfolios: Implications for firms’ innovation and financial performance," Journal of World Business, Elsevier, vol. 59(1).
    13. Schmid, Stefan & Altfeld, Frederic, 2018. "International work experience and compensation: Is more always better for CFOs?," European Management Journal, Elsevier, vol. 36(4), pages 530-543.
    14. Pinar Ozcan, 2018. "Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 295-328, February.
    15. Mariotti, Francesca & Haider, Sajjad, 2020. "Managing institutional diversity and structural holes: Network configurations for recombinant innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    16. Guan, JianCheng & Zuo, KaiRui & Chen, KaiHua & Yam, Richard C.M., 2016. "Does country-level R&D efficiency benefit from the collaboration network structure?," Research Policy, Elsevier, vol. 45(4), pages 770-784.
    17. Doohee Chung & Marco Jinhwan Kim & Jina Kang, 2019. "Influence of alliance portfolio diversity on innovation performance: the role of internal capabilities of value creation," Review of Managerial Science, Springer, vol. 13(5), pages 1093-1120, November.
    18. Gao, Yongqiang & Yang, Haibin & Zhang, Miaohan, 2021. "Too bad to fear, too good to dare? Performance feedback and corporate misconduct," Journal of Business Research, Elsevier, vol. 131(C), pages 1-11.
    19. Saemundsson, Rögnvaldur & Candi, Marina & Sigurjonsson, Throstur Olaf, 2022. "The influence of performance feedback and top management team orientation on decisions about R&D in technology-based firms," Technovation, Elsevier, vol. 113(C).
    20. Elio Shijaku & Martin Larraza-Kintana & Ainhoa Urtasun-Alonso, 2020. "Network centrality and organizational aspirations: A behavioral interaction in the context of international strategic alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 813-828, July.

    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:kap:asiapa:v:41:y:2024:i:2:d:10.1007_s10490-023-09872-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.