This article outlines the mechanism by which brokerage provides social capital. Opinion and behavior are more homogeneous within than between groups, so people connected across groups are more familiar with alternative ways of thinking and behaving. Brokerage across the structural holes between groups provides a vision of options otherwise unseen, which is the mechanism by which brokerage becomes social capital. I review evidence consistent with the hypothesis, then look at the networks around managers in a large American electronics company. The organization is rife with structural holes, and brokerage has its expected correlates. Compensation, positive performance evaluations, promotions, and good ideas are disproportionately in the hands of people whose networks span structural holes. The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable. I close with implications for creativity and structural change.

https://www.jstor.org/stable/pdf/10.1086/421787.pdf

Structural Holes and Good Ideas.

http://onemvweb.com/sources/sources/network_structure_social_capital.pdf

The Network Structure Of Social Capital

The central premise of upper echelons theory is that executives' experiences, values, and personalities greatly influence their interpretations of the situations they face and, in turn, affect their choices. At the invitation of the editor, I recap the AMR article in which the theory was originally presented (Hambrick & Mason, 1984), discuss subsequent refinements of the theory, and lay out several promising avenues for future upper echelons research.

Upper Echelons Theory: An Update

Boards of directors serve two important functions for organizations: monitoring management on behalf of shareholders and providing resources. Agency theorists assert that effective monitoring is a function of a board's incentives, whereas resource dependence theorists contend that the provision of resources is a function of board capital. We combine the two perspectives and argue that board capital affects both board monitoring and the provision of resources and that board incentives moderate these relationships.

https://www.jstor.org/stable/pdfplus/30040728.pdf

Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives

http://ivl.cns.iu.edu/km/pres/2009-zoss-links/2009-zoss-links-research-design/references/borgattifoster.pdf

The Network Paradigm in Organizational Research: A Review and Typology

Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition:

Some top executives are more committed to the status quo—particularly to their organization's current strategy and leadership profile—than are others. Most empirical research on upper echelons treats psychological phenomena as a ‘black box’—the unobserved intervening mechanisms—that causes associations between more observable executive characteristics and organizational outcomes. In contrast, this paper attempts to directly examine the determinants of an important element of an executive's psychological orientation—commitment to the status quo (CSQ). We focus on a select set of variables which have been posited in prior research as determinants of executive CSQ, but which have not been directly tested for such a relationship. Based on a large-scale survey methodology, results suggest that an executive's tenure in an industry is a pronounced determinant of CSQ, and has significantly more impact than organizational tenure. As expected, the firm's current performance was found to be positively related to CSQ; this relationship was stronger in high-discretion than in low-discretion industries. Finally, the project reaffirms a well known human tendency: incumbent CEOs tend to believe that their eventual successors should be just like them.

Top executive commitment to the status quo: some tests of its determinants

We are grateful to Eric Abrahamson, Ron Burt, Eric Leifer, Aneil Mishra, and Bob Yavitz for their contributions on earlier drafts of this manuscript. The paper has also benefited from the constructive comments of Associate Editor Mark Mizruchi and three anonymous ASO reviewers. We examine the extent to which executives' boundary spanning relations inside and outside their industry affect organizational strategy and performance. We posit that the informational and social influences of external ties will be reflected in the degree to which the organization's strategy conforms to or deviates from the central tendencies of its industry and that the alignment of executives' external ties with the firm's strategy will be beneficial to firm performance. Using a multiyear sample of firms in the branded foods and computer industries, we find that executives' intraindustry ties are related to strategic conformity, that extraindustry ties are associated with the adoption of deviant strategies, and that alignment of executives' external ties with the informational requirements of the firm's strategy enhances organizational performance. Our results also show that a unique or differentiated strategy is not universally advantageous and that the benefits accruing from strategic conformity are especially strong in the more uncertain computer industry.'

The external ties of top executives: Implications for strategic choice and performance.

While top executives are argued to play a central role in strategic adaptation, evidence suggests that they are not equally open to organizational change. This study extends earlier investigation of the determinants of top executive commitment to the status quo (CSQ) to the international arena, examining the influence of cultural values on executive open-mindedness toward change. Using data from a survey of top managers in 20 countries, analyses reveal that values of individualism, uncertainty avoidance, power distance, and long-term orientation are significantly related to executives’ adherence to existing strategy and leadership profiles. Further, while confirming earlier findings that industry tenure is positively related to strategy CSQ, results show that tenure does not significantly affect leadership CSQ once cultural values are controlled. In summary, the findings reveal that culture has an important impact on executive mindsets, as demonstrated by the fact that executives of differing cultural background are not equally open to change in organizational strategy and leadership profiles. Second, the findings suggest that executives’ views of appropriate leadership profiles reflect the imprint of cultural socialization moreso than professional experience. Finally, and more broadly, the study offers empirical support for the view that values figure prominently in shaping executives’ strategic and leadership orientations. © 1997 by John Wiley & Sons, Ltd

Marta A. Geletkanycz

Papers

Upper Echelons Research Revisited: Antecedents, Elements, and Consequences of Top Management Team Composition:

Top executive commitment to the status quo: some tests of its determinants

The external ties of top executives: Implications for strategic choice and performance.

The salience of 'culture's consequences' : The effects of cultural values on top executive commitment to the status quo

The salience of `culture's consequences': The effects of cultural values on top executive