Networking-bonding actions, quality of ties, and channel member collaboration: Evidence from U.K.-based small firms

ABSTRACT

We aim to deepen our understanding of the processes through which network-bonding actions affect channel member collaboration in the small firm context. We develop a framework to highlight the mediating roles of quality of ties and moderating role of control mechanisms in such processes. We test our framework using the quantitative method, by analyzing survey from 385 U.K.-based small firms. We find that social interaction tends to affect operation synchronization via goal congruence, though affects intelligence generation via relational embeddedness. Furthermore, contractual governance has a negative moderating effect on the relationship between social interaction and goal congruence.

Notes

¹ We use the definition of “small firm” employed in the UK, as this research analyzes survey data obtained from UK-based small firms.

² According to social network theory, the quality of ties captures the relational connectedness among network actors. It takes different forms, such as tie strength (Granovetter, 1983), goal congruence (Yan & Dooley, 2013, 2014), relational embeddedness (Bernardes, 2010; Kim, 2014), trust (Li et al., 2010; Tsai & Ghoshal, 1998), and social capital (Villena et al., 2011; Yim & Leem, 2013). We recognize that many of the forms identified here are closely interrelated or sometimes overlap (i.e., trust and social capital), depending on how researchers conceptualize their model based on a specific theoretical perspective (Krause et al., 2007; Tsai & Ghoshal, 1998).

³ Although these two hypotheses are similar to what has been previously hypothesized (see Table 1). We formalize these two hypotheses to facilitate the flow of this article, as it may be easier for readers to understand the mediating role of goal congruence and relational embeddedness after we conceptualize the main effects. We thank a reviewer to pointing out this limitation.