Informal networks can be a major obstacle to the effectiveness of managers. At the same time though, they can enable and facilitate business activities and support the efficiency and effectiveness of managerial actions. Since informal ties and networks can have a bright and a dark side, it is important for international managers to understand the way they work in the respective cultural context. Informal networks are often perceived as pervasive in emerging markets such as China or Russia, to be used to instrumentalize social capital and develop a relational competitive advantage or to simply circumvent formal rules. Contrary to this perception, they often stand for sociability and social cohesion, antecedents of a strong society. To date it remains unclear whether multinational enterprises have processes in place to identify, control, and manage informal ties and networks.
Informal Networks in International Business sheds light into the complex nature of informal networks and the respective context in which they operate. Leading experts provide insights into novel research themes and extend conventional research paths on informal network phenomena in the international business context. The contributions in this edited volume help international business scholars, students, and international managers in globally operating organizations alike to develop knowledge about the dynamics, complexities and ambiguities of informal networks and informal networking worldwide.
Author(s): Sven Horak
Publisher: Emerald Publishing
Year: 2022
Language: English
Pages: 263
City: Bingley
Cover
Informal Networks in International Business
Informal Networks inInternational Business
Copyright
Table of Contents
About the Contributors
Preface: Informal Networks WorldwideNetworking
1. Emerging Theories, Concepts, Observations
1. Informal Networks: Concepts, Constructs, Emerging Theories
Abstract
Introduction
Concepts
Informal Network Constructs
Emerging Theories and Future Research Directions
Conclusion
Notes
References
2. Transitioning From Strong Ties to Weak Ties in Emerging Economies
Abstract
Networks and Performance
Toward a Contingency Perspective
Strong Ties versus Weak Ties
Bringing Weak Ties Back in
Contingency Variables
Discussion
Research Contributions and Implications
Practical Implications
Conclusion
Acknowledgments
Notes
References
3. A Liability or an Asset of Foreignness? Theorizing on Informal Networks in International Business
Abstract
Introduction
Liability vs. Asset of Foreignness
Formal and Informal Networks
Informal Networks as Social Capital
Lack of Informal Networks as a Liability of Foreignness
Capitalizing on Foreignness When Building Informal Networks in the Host Country
Conclusion
Note
References
4. Diaspora Networks?
Abstract
Introduction
The Identity: What Is Diaspora?
The “Old” and the “New”
Individual Versus Common Good in Development
The Trust: Diaspora Networks in History and Now
Chinese Diaspora
Medieval Trade Networks and Trust
The Armeniand Diaspora Online Survey
Engagement Infrastructure: From Self-Organization to Formal Engagement
India and Discovery of Diasporas
A Comment on Brain-Drain
Diaspora Network Engagement Infrastructure
The Triangular Dimension View
Conclusion
Acknowledgments
Notes
References
5. Informal Transactional/Effectual Networks and Entrepreneurial Innovation in Response to Uncertainty: A View on the Globa ...
Abstract
Introduction
Uncertainty Resolution Through Entrepreneurial Networks
Asymmetric Responses
Feelings Matter
The Firm as Entrepreneur
Transactional Networks in the Insurance Industry
Insurance Industry Structure
Insurance for Insurers
Transactional/Effectual Networks in the Insurance Industry
Transactional vs. Effectual Process
Creation of Trust
Engaged Shareholders
Conclusion
References
2. Informal Network Constructs
6. The Persistent Power of Guanxi in Transitional China
Abstract
Theoretical Considerations
Networks and Jobs
Guanxi Favoritism Versus Market Rationality
Guanxi Dynamism in Market Transition
Propositions and Hypotheses
The JSNET Project
Measuring Information and Influence
Measuring Labor Market Contexts
Chinese General Social Survey (CGSS) as a Supplement
Summary Results
Job Acquisition
Job Quality
Entry-Level Wage
Current Wage
Conclusions
References
7. Korea: Yongo 2.0, Global Inmaek, and Network Multiplexity
Abstract
Introduction
Traditional Informal Ties and Networks in Korea
Yongo
Inmaek
Yonjul
Yongo Today: Restraining and Driving Forces
Spoon-Class Theory and N-po Generation
Hakyon-Hyulyon Multiplexity and Inheritance
Yongo 2.0 and Global Inmaek
Workplace-Based Ties: Jikyon and Eobyon
From Inmaek to Global Inmaek
Implications for Research and Management Practice
The Inaccessibility of Yongo Circles for Business Expatriates
Yongo-Loyalty and Information Transfer
Conclusion
Notes
References
8. Conceptual Complexity and Cultural Embeddedness of Wasta in the Middle East
Abstract
Introduction
Definition of Wasta
Features of Wasta
Dimensions of Wasta
Wasta From Social Networks and Social Capital Perspectives
Social Capital Theory
Wasta From an Institutional Perspective
Conclusion
References
9. Informal Networks in the Russian Business Context: The Case of Russian Multinationals’ Political Networks
Abstract
Introduction
Governmental Influence on Russian Firms' Internationalization Process
Governmental Influence on Internationalization of State-Owned and Privatized Companies
Role of Politics in Russian MNEs' Internationalization
Mechanisms of Governmental Influence on MNEs
Role of State Ownership and Governmental Affiliation Level
Political Connectedness as an Example of Informal Networks
Role of Political Connectedness
Political Connections and Internationalization
Conclusion and Implications for Future Research
References
10. Informal Practices in Brazil: Insights Form the Brazilian Jeitinhoa
Abstract
Introduction
What Is Jeitinho?
Historical Background
Definition
Jeitinho in Business Organizations
“Brazil Is Not for Beginners”: Practical Recommendations
References
11. Expatriate Social Network Formation in Denmark: Challenges of Developing Informal Ties Locally
Abstract
Introduction
Breaking Out of the Expatriate Bubble
Building a Social Network Abroad
Individual Level
Dyadic Level
Situational Level
Connecting With Danes
Homogeneity
The Value of Equality
Public-Private Divide
Recommendations for Connecting With Danes
Conclusion
Notes
References
12. Old Boy Networks at Work in the United States
Abstract
Introduction
Theoretical Framework
Old Boy Networks as Social Closure
Old Boy Networks in Organizations
Hiring
Socialization
Performance Evaluation and Promotion
Old Boy Networks and International Business
Conclusion
Notes
References
3. Perspectives and Implications
13. Networking in a Global Context: Ethical Dilemmas
Abstract
Introduction
Differences in Global Networking and the Role of Favors
Ethical Dilemmas and Network Access
Examples of Ethical Dilemmas in Global Networking
Outlook
Note
References
14. Wasta as an Example of Informal Social Networks in Emerging Markets: Research Status and Suggestions for Future Directions
Abstract
Introduction
Informal Social Networks: Observations on Past Approaches to Research
Wasta Research: Where Are We Now?
From Structure to Process: “How” Before “Why”?
Borrowing From Other Disciplines
Conclusion
References
