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    Social network contingency, symbolic management, and boundary stretching

    Access Status
    Fulltext not available
    Authors
    Markõczy, L.
    Li Sun, S.
    Peng, Mike
    Shi, W.
    Ren, B.
    Date
    2013
    Type
    Journal Article
    
    Metadata
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    Citation
    Markõczy, L. and Li Sun, S. and Peng, M. and Shi, W. and Ren, B. 2013. Social network contingency, symbolic management, and boundary stretching. Strategic Management Journal. 34 (11): pp. 1367-1387.
    Source Title
    Strategic Management Journal
    DOI
    10.1002/smj.2072
    ISSN
    0143-2095
    School
    School of Management
    URI
    http://hdl.handle.net/20.500.11937/50053
    Collection
    • Curtin Research Publications
    Abstract

    A firm's structural position within corporate networks may affect the extent to which it engages in boundary stretching practices. Since social norms support low CEO compensation, offering high CEO compensation in China can be seen as a boundary stretching practice. Setting up a compensation committee (CC) may be viewed as a form of symbolic management in China. We argue that firms operating within central corporate network positions opt to pay higher CEO compensation without engaging in symbolic management. On the other hand, firms operating in structural hole positions tend to either pay lower CEO compensation or use CCs as a symbolic management tool in order to pay higher CEO compensation. Our hypotheses are largely supported based on 7,618 firm-year observations in China. .

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