Informal Networks in International Business

Description

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. 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