Strategic Human Resource Management of Top Management Team Social Networks: Controlling Executive Relationships for Enhanced Organisational Advantage

The benefits of personal networks have long been known to managers, and recent work in the field of strategic management has touted the special role relational resources potentially play in competitive advantage. Although networks are generally regarded as important resources for both individuals and firms, little is known about the systematic and purposeful management of this important resource. Some firms attempt to purchase networks through employee recruitment policies, while others may focus more on developing the networks of existing employees. Referring to recent empirical studies of networks of key employees, including top managers and other key boundary-spanners, we shed considerable light on how firms make decisions about whether to make or buy networks and how to develop employee networks. Specifically, we study the strategic human resource practices firms can use to facilitate the purposeful development of executive networks. We also provide empirical support for the value of executive networks for enhancing organisational performance.