Performance impact of middle managers' adaptive strategy implementation: The role of social capital

This article reconciles mixed findings about the performance impact of middle managers' strategy involvement. We propose that the relationship between middle managers' adaptive strategy implementation—through upward and downward influence—and objective business performance can be curviline...

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Bibliographic Details
Published in:Strategic management journal 2014-01, Vol.35 (1), p.68-87
Main Authors: Ahearne, Michael, Lam, Son K., Kraus, Florian
Format: Article
Language:English
Subjects:
adaptive strategy implementation
Business management
Corporate strategies
Influence
Manager behavior
Managers
Middle management
middle managers
Multidimensional analysis
multilevel analysis
paradox
Paradoxes
Public image management
Sales management
Social capital
social network
Social networks
Strategic management
Strategy implementation
Studies
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Summary:This article reconciles mixed findings about the performance impact of middle managers' strategy involvement. We propose that the relationship between middle managers' adaptive strategy implementation—through upward and downward influence—and objective business performance can be curvilinear and contingent on formal and informal structures. Applying a multilevel perspective to social networks, we empirically show that reputational social capital enhances the performance impact of middle managers' upward influence while informational social capital elevates the performance impact of their downward influence. The size of a business unit or region has differntial moderating effects. The curvilinear effects of middle managers' upward influence and reputational and informational social capital on business unit performance reflect paradoxes. We discuss the implications of these findings for strategy implementation research and practice.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.2086