Resource title

Access and mobilization: social capital and top management response to market shocks

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Resource description

The authors formulate and test a model of social taht conceptualizes the context in which actors operate along two dimensions of uncertainty, namely uncertainty about ego's access to resources and information and uncertainty about the mobilization of actors controlling those resources and information. They apply their model to studying the effectiveness of chief executive officers (CEOs) in helping their organizations to respond to a sudden increase in market uncertainty that threatened the survical of their firms. Using a representative sample of Slovenian firms in the early nineties, the authors show that, after controlling for the level of exposure to the market shock, CEOs who could rely on the mobilization of a cohesive top management tean and whose networks were relatively more focused on their external constituencies than on their internal contacts were better positioned to increase sales to the domestic and Western market economies, thus dampering the negative impact of the shock caused by the separation from former Yugoslavia. In addition, they show that access to sparse external networks were crucial for those firms that depended on the shrinking and highly competitive internal market.

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Resource language

en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2002/2002-14.pdf

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Copyright INSEAD. All rights reserved