Perceived Influence and Friendship as Antecedents of Cooperation in Top Management Teams: A Network Approach

Abstract

Using the relational dyad as unit of analysis this study examines the effects of perceived influence and friendship ties on the formation and maintenance of cooperative relationships between corporate top executives. Specifically, it is argued that perceived influence as well as friendship ties between any two managers will enhance the likelihood that these managers collaborate with each other. Additionally, a negative interaction effect between perceived influence and friendship on cooperation is proposed. The empirical analyses draw on network data that have been collected among all members of the top two organizational levels for the strategy-making process in two multinational firms headquartered in Germany. Applying logistic regression based on QAP the empirical results support our hypotheses on the direct effects between perceived influence, friendship ties, and cooperative relationships in both companies. In addition, we find at least partial support for our assumption that perceived influence and friendship interact negatively with respect to their effect on cooperation. Seemingly, perceived influence is partially substituted by managerial friendship ties.