Social network contingency, symbolic management, and boundary stretching

• 成果类型: Article
• 署名作者: Markoczy, Livia; Sun, Sunny Li; Peng, Mike W.; Shi, Weilei (Stone); Ren, Bing
• 署名单位: University of Texas System; University of Texas Dallas; University of Missouri System; University of Missouri Kansas City; City University of New York (CUNY) System; Baruch College (CUNY); Nankai University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2072
• 发表日期: 2013
• 页码: 1367-1387
• 关键词: SYMBOLIC MANAGEMENT; corporate interlocks; ceo compensation; CHINA

摘要

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. Copyright (c) 2013 John Wiley & Sons, Ltd.