Managerial Network Impacts Firm Performance

Abstract

This study measures the impact of managerial networks on firm growth. A simple random technique was used to select 680 firms and a top manager from each firm. A structured pretested questionnaire was designed to collect information. The sample firms were further stratified into subgroups based on size of firms (small firms and large) and business sectors (manufacturing and service firms). Statistical tests and multivariate models were formulated for data analysis. The managerial networking intensity was found to be a positive and significant determinant of firm growth regardless of type of business and size. Managerial networking with buying firms or buyers, competitors, and government officials were found positive and statistical significant determinants of firm growth.

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