Managerial ties in economy hotel chains in China

Abstract

Purpose This study aims to discover how the patterns and effects of managerial ties differ among state‐owned, domestic private, and foreign firms. Design/methodology/approach Data were collected through in‐depth interviews with 15 top executives of economy hotel chains headquartered in five cities in China. The typical qualitative data analysis procedures, such as voice‐recording, transcribing, coding, and pattern‐matching, were strictly followed. Findings Results indicate that managers in firms of different ownership types use different network tie combinations and differ in the extent to which they can benefit from managerial ties. For example, entrepreneurs in state‐owned enterprises thought strong ties were more important than weak ties and political ties were more important than business ties, while those in domestic private firms and firms founded by Chinese using foreign funding benefited more from business ties. Originality/value The study contributes to both entrepreneurship and social network theories by summarizing different patterns of managerial ties and exploring the rationales for the variance. It also provides evidence for understanding the important roles played by executives' network ties in the entrepreneurial processes. Entrepreneurs in the Chinese hospitality industry may use the findings to direct organization resources to more productive managerial ties and manage their network ties efficiently in the dynamic environment of a transitional economy.

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