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The Role Of Informal And Formal Networks: How Professionals Can Be Innovative In A Constrained Fiscal Environment

Author

Listed:
  • YVONNE BRUNETTO

    (Southern Cross University, Gold Coast, Australia)

  • MATTHEW J. XERRI

    (#x2020;Griffith University, Gold Coast, Australia)

  • SILVIA NELSON

    (Southern Cross University, Gold Coast, Australia)

  • BENJAMIN FARR-WHARTON

    (#x2021;University of Technology, Sydney, Australia)

Abstract

One way of circumventing issues associated with constricted resources is to use organisational social resources embedded within both formal and informal social networks to provide increased support for proactive and innovative employee behaviour. Social exchange theorists argue that informal working relationships with non-line management provides an additional power source alongside traditional management relationships to foster proactive and innovative behaviour even when resources are scarce. About 272 Australian engineers, asset managers and technical employees were surveyed from public and private sector organisations, and data was examined using structural equation modelling. The findings depict that formal and informal leader–employee, organisational–employee relationships explained almost 53% of resource adequacy and resource adequacy explained 60.5% of the proactive engineering asset management organisational culture and 28.1% of innovative behaviour. This paper contributes insight into another hierarchical workplace relationship that employees can use to gain access to resources, and be proactive and innovative in the workplace.

Suggested Citation

  • Yvonne Brunetto & Matthew J. Xerri & Silvia Nelson & Benjamin Farr-Wharton, 2016. "The Role Of Informal And Formal Networks: How Professionals Can Be Innovative In A Constrained Fiscal Environment," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-27, April.
    • Handle: RePEc:wsi:ijimxx:v:20:y:2016:i:03:n:s1363919616500511
    DOI: 10.1142/S1363919616500511
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    References listed on IDEAS

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    1. Lynn M. Shore & Jacqueline A-M. Coyle-Shapiro & Xiao-Ping Chen & Lois E. Tetrick, 2009. "Social Exchange in Work Settings: Content, Process, and Mixed Models," Management and Organization Review, The International Association for Chinese Management Research, vol. 5(3), pages 289-302, November.
    2. Matthew J. Xerri & Yvonne Brunetto, 2011. "The Impact Of The Perceived Usefulness Of Workplace Social Networks Upon The Innovative Behaviour Of Sme Employees: A Social Capital Perspective," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 959-987.
    3. Matthew J. Xerri, 2014. "Examining The Relationship Between Organisational Justice, Job Satisfaction And The Innovative Behaviour Of Nursing Employees," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-22.
    4. Tiina Tuominen & Marja Toivonen, 2011. "Studying Innovation And Change Activities In Kibs Through The Lens Of Innovative Behaviour," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 393-422.
    5. Shore, Lynn M. & Coyle-Shapiro, Jacqueline A-M. & Chen, Xiao-Ping & Tetrick, Lois E., 2009. "Social Exchange in Work Settings: Content, Process, and Mixed Models," Management and Organization Review, Cambridge University Press, vol. 5(03), pages 289-302, November.
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