Perspectives of Innovations, Economics and Business

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 19
Issue 1
Online publication date 2019-04-16
Title Linking network centrality to performance revisit: understanding and dealing with simultaneity in the creation of soft innovation
Author Jimmy H. T. Chan, Alan K. M. Au, Anthony Ko, Matthew Yeung
Empirical studies of social network analysis have provided sufficient evidence to support the general claim that high-centrality individuals in social networks outperform those with low centrality. We derive arguments from theories to question this claim and identify the needs for considering reversed causality when examining the centrality-performance relationship. It is puzzling that previous studies have assumed causality only in one direction from centrality to performance, but not the reverse. The possible origins of the endogeneity are discussed. Furthermore, the study re-examines the centrality-performance relationship in the context of movie directors’ networks and box-office performance. Our findings show that all measures of centrality significantly affect the outcome variable when the method of instrumental variables is applied to address the proposed reversed causality.
Ahearne, M., Lam, S. K., Hayati, B., & Kraus, F. (2013). Intrafunctional competitive intelligence and sales performance: A social network perspective. Journal of Marketing, 77(September), 37-56. 

Ainslie, A., Drèze, X., & Zufryden, F. (2005). Modeling movie life cycles and market share. Marketing Science, 18(3), 352-372.

Aktamov, S., & Zhao, Y. (2014). Impact of network centrality positions on innovation performance of the firm: Evidence from China automobile industry. Business Management and Strategy, 5(1), 164-178.

Balkundi, P., Kilduff, M., & Harrison, D. a. (2011). Centrality and charisma: Comparing how leader networks and attributions affect team performance. Journal of Applied Psychology, 96(6), 1209-1222. 

Barsness, Z. I., Diekmann, K. A., & Seidel, M. D. L. (2005). Motivation and opportunity: The role of remote work, demographic dissimilarity, and social network centrality in impression management. Academy of Management Journal, 48(3), 401-419. 

Basuroy, S., Chatterjee, S., & Ravid, S. A. (2003a). Critical reviews? The box office effects of film critics, star power, and budgets. Journal of Marketing, 67(4),103-117.

Basuroy, S., Chatterjee, S., & Ravid, S. A. (2003b). How Critical Are Critical Reviews? The box office effects of film critics, star power, and budgets. Journal of Marketing. 67(4), 103-117.

Borgatti, S. P. (2005). Centrality and network flow. Social Networks, 27(1), 55-71. 

Borgatti, S. P., Everett, M. G., & Freeman, L. C. (2002). UCINET 6 for Windows: Software for social network analysis (Version 6.102). Harvard, Ma: Analytic Technologies.

Borgatti, S. P.  & Cross, R. (2003). A relational view of information seeking and learning in social networks. Management Science, 49(4), 432-445.

Bowler, M., Bowler, M., Halbesleben, J. R. B., Halbesleben, J. R. B., Stodnick, M., Stodnick, M., Little, L. M. (2009). The moderating effect of communication network centrality on motive to perform interpersonal citizenship. Journal of Managerial Issues, XXI(1), 80-96.

Burt, R. S. (2001). Structural holes versus network closure as social capital. in Lin, N., Cool, K.S. and Aldine de Gruter, R.S. (ed.) Social Capital: Theory and Research, 1-30.

Byrne, D. (1971). The attraction paradigm. New York: Academic Press.

Cattani, G., & Ferriani, S. (2008). A core/periphery perspective on individual creative Performance: Social networks and cinematic achievements in the Hollywood film industry. Organization Science, 19(6), 824-844. 

Chan, C. W. (2000). The structure and marketing analysis of Hong Kong film industry. Hong Kong: City Entertainment Magazine Publications.

Chan, J. H. T., Ko, A. C. K., Au, A. K. M., & Yeung, M. C. H. (2018). A relational perspective on pure project performance: Network centrality and cinematic achievements in the Hong Kong film industry. Management Research Review. 41(6), 753-772.

Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling theory: A review and assessment. Journal of Management, 31(1), 53-75

Contractor, N. S., & Su, C. (2012). Understanding groups from a network perspective. In A. B. Hollingshead & M. S. Poole (Eds.),Research methods for studying groups and teams: A guide to approaches, tools and technologies , 284-310. New York: Routledge.

Correia, M. F., Cunha, R. C. e, & Scholten, M. (2013). Impact of M&As on organizational performance: The moderating role of HRM centrality. European Management Journal, 31(4), 323-332. 

Cragg, J. G., & Donald, S. G. (1993). Testing identifiability and specification in instrumental variable models. Econometric Theory, 9(2), 222-240. 

Dhar, T., Sun, G., & Weinberg, C. B. (2012). The long-term box office performance of sequel movies. Marketing Letters, 17(3), 508-517.

DiStefano, G., Gambardella, A., & Verona, G. (2012). Technology push and demand pull perspectives in innovation studies: Current findings and future research directions. Research Policy, 41(8),1283-1295. 

Eckenhofer, E. M. (2010). Is centrality the key to high performance. Journal of Competitiveness, 2(2), 58-73.

Ferriani, S., Cattani, G., & Baden-Fuller, C. (2009). The relational antecedents of project-entrepreneurship: Network centrality, team composition and project performance. Research Policy, 38(10), 1545-1558.

Freeman, L. C. (1978). Centrality in social networks conceptual clarification. Social Networks, 1(3), 215-239.

Gilsing, V., Nooteboom, B., Vanhaverbeke, W., Duysters, G., & van denOord, A. (2008). Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density. Research Policy, 37(10), 1717-1731. 

Gonzalez-Brambila, C. N., Veloso, F. M., & Krackhardt, D. (2013). The impact of network embeddedness on research output. Research Policy, 42(9), 1555-1567. 

Granovetter, M. (1985). Economic-action and social-structure - the problem of embeddedness. American Journal of Sociology, 91(3), 481-510. 

Guan, J., Zhang, J., & Yan, Y. (2015). The impact of multilevel networks on innovation. Research Policy, 44(3), 545-559. 

Guide, V. D. R., & Ketokivi, M. (2015). Notes from the editors: Redefining some methodological criteria for the journal. Journal of Operations Management, 37, 5-8.

Hahn, M. H., Lee, K. C., & Lee, D. S. (2015). Network structure, organizational learning culture, and employee creativity in system integration companies: The mediating effects of exploitation and exploration. Computers in Human Behavior, 42, 167-175. 

Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50(4), 1029-1054.

Hefti, J., & Levie, J. (2014). I have a dream: The role of signalling in entrepreneurial leadership. In Rencontre de Saint Gall. St Gallen: Switzerland.

Heidl, R. A. ., Kevin Steensma, H., & Phelps, C. . (2014). Divisive faultlines and the unplanned dissolutions of multipartner alliances. Organization Science, 25(5), 1351-1371.

Hite, J. M., & Badir, Y. F. (2014). The moderating roles of academic age and institutional sector on the relationship between co-authorship network centrality and academic research performance. Journal of Information Management, 66(1), 38-53.

Ho, V. T., & Pollack, J. M. (2014). Passion isn’t always a good thing: Examining entrepreneurs’ network centrality and financial performance with a dualistic model of passion. Journal of Management Studies, 51(3), 433-459. 

Hoppe, B., & Reinelt, C. (2010). Social network analysis and the evaluation of leadership networks. The Leadership Quarterly, 21(4), 600-619.

Ibarra, H. (1993). Network centrality, power, and innovation involvement: Determinants of technical and administrative roles. The Academy of Management Journal, 36(3), 471-501.

Jean, R.J.B., Deng, Z., Kim, D., & Yuan, X. (2016). Assessing endogeneity issues in international marketing research. International Marketing Review, 33(3), 483-512. 

Jen, C. T. (2013). The influence of conflict centrality and task interdependency on individual performance and job satisfaction. International Journal of Conflict Management, 24(2), 126-147. 

Jo, I. H., Kang, S., & Yoon, M. (2014). Effects of communication competence and social network centralities on learner performance. Educational Technology and Society, 17(3), 108-120.

Kane, G. C., & Borgatti, S. P. (2011). Centrality-IS proficiency alignment and workgroup performance. MIS Quarterly, 35(4), 1063-1078. 

Kang, M., & Hau, Y. S. (2014). Multi-level analysis of knowledge transfer: a knowledge recipient’s perspective. Journal of Knowledge Management, 18(4), 758-776.

Keim, D. B., & Madhavan, A. (1997). Transactions costs and investment style: An inter-exchange analysis of institutional equity trades. Journal of Financial Economics, 46(3), 265-292.
Knoke, D., & Yang, S. (2008). Social network analysis. Quantitative applications in the social sciences, Sage Publication. 

Larcker, D. F., So, E. C., & Wang, C. C. Y. (2013). Boardroom centrality and firm performance. Journal of Accounting and Economics, 55(2-3), 225-250. 

Lazarsfeld, P. F., & Merton, R. K. (1954). Friendship as a social process: A substantive and methodological analysis. Freedom and Control in Modern Society, 18, 18-66. 

Li, E. Y., Liao, C. H., & Yen, H. R. (2013). Co-authorship networks and research impact: A social capital perspective. Research Policy, 42(9), 1515-1530. 

Li, W., Veliyath, R., & Tan, J. (2013). Network characteristics and firm performance: An examination of the relationships in the context of a cluster. Journal of Small Business Management, 51(1), 1-22. 

Li, Y., Zhao, X., Shi, D., & Li, X. (2014). Governance of sustainable supply chains in the fast fashion industry. European Management Journal, 32(5), 823-836.
Mazzola, E., Perrone, G., & Kamuriwo, D. S. (2015). Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow. International Journal of Production Economics, 160, 106-119. 

McDowell, W. C., & Voelker, T. A. (2008). Information, resources and transaction cost economics: the effects of informal network centrality on teams and team performance. Journal of Behavioral & Applied Management, 9(2), 134-147. 

McPherson, M., Smith-Lovin, L., & Cook, J. M. (2001). Birds of a feather: homophily in social networks. Annual Review of Sociology., 27, 415-444.

Mehra, A., Dixon, A. L., Brass, D. J., & Robertson, B. (2006). The social network ties of group leaders: implications for group performance and leader reputation. Organization Science, 17(1), 64-79. 

Mochalova, A., & Nanopoulos, A. (2014). A targeted approach to viral marketing. Electronic Commerce Research and Applications, 13(4), 283-294. 

Park, H., Han, S. H., Rojas, E. M., Son, J., & Jung, W. (2011). Social network analysis of collaborative ventures for overseas construction projects. Journal of Construction Engineering and Management, 137(5), 344-355.

Perc, M. (2014). The Matthew effect in empirical data. Journal of The Royal Society Interface, 11(98), 20140378.

Podolny, J. M., & Stuart, T. E. (1995). A role-based ecology of technological change. American Journal of Sociology, 100, 1224-1260. 

Ramasamy, B., Yeung, M., & Laforet, S. (2012). China’s outward foreign direct investment: Location choice and firm ownership. Journal of World Business, 47(1), 17-25.

Sargan, J. D. (1958). The estimation of economic relationships using instrumental variables. Econometrica, 26(3), 393-415.

Scheidder, B. (1987). the people make the place. Personnel Psychology. 40(3), 437-453. 

Sedita, S. R. (2008). Interpersonal and Inter‐organizational Networks in the Performing Arts: The Case of Project‐Based Organizations in the Live Music Industry. Industry & Innovation, 15(5), 493-511.

Sharabi, M., & Harpaz, I. (2011). Gender and the relative centrality of major life domains: changes over the course of time. Community, Work & Family, 14(1), 57-62. 

Shipilov, A.V. (2009). Firm scope experience, historic multimarket contact with partners, centrality, and the relationship between structural holes and performance. Organization Science, 20(1), 85-106. 

Shugan, S. M. (2004). Endogeneity in marketing decision models. Marketing Science, 21(1), 1-3.

Tortoriello, M., McEvily, B., &Krackhardt, D. (2014). Being a catalyst of innovation: The role of knowledge diversity and network closure. Organization Science, 26(2), 423-438. 

Tsai, W. (2001). Knowledge transfer in intraorganizational networks: Effects of network position and absorptive capacity on business unit innovation and performance. Academy of Management Journal, 44(5), 996-1004.

Tsui, A. S., & O’Reilly, C. A. (1989). Beyond simple demographic effects: The importance of relational demography in superior-subordinate dyads. Academy of Management Journal, 32(2), 402-423. 

Ullah, S., Akhtar, P., & Zaefarian, G. (2018). Dealing with endogeneity bias: The generalized method of moments (GMM) for panel data. Industrial Marketing Management, 71, 69-78.

Wanzenböck, I., Scherngell, T., & Brenner, T. (2014). Embeddedness of regions in European knowledge networks: a comparative analysis of inter-regional R&D collaborations, co-patents and co-publications. Annals of Regional Science, 53(2), 1-32. 

Wasserman, S., & Faust, K. (1994). Social network analysis: methods and applications. New York: Cambridge University Press.

Wu, W., Yeh, R., & Hung, H. (2012). Knowledge sharing and work performance: A Network Perspective. Social Behavior and Personality, 40(7), 1113-1120. 

Xu, W. W., Sang, Y., Blasiola, S., & Park, H. W. (2014). Predicting opinion leaders in twitter activism networks: the case of the wisconsin recall election. American Behavioral Scientist, 58(10), 1278-1293.

Zaefarian, G., Kadile, V., Henneberg, S. C., & Leischnig, A. (2017). Endogeneity bias in marketing research: Problem, causes and remedies. Industrial Marketing Management, 65, 39-46.

Zhang, J., & Baden-Fuller, C. (2010). The influence of technological knowledge base and organizational structure on technology collaboration. Journal of Management Studies, 47(4), 679-704.

Keywords Network centrality; soft innovation; social network analysis, simultaneity
Pages 16-32
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Search in articles
Journal Published articles
PIEB 611
Journal Hits
PIEB 1809820
Journal Downloads
PIEB 28784
Total users online -