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Managerial networks and strategic flexibility: A QM perspective

Abstract

Purpose – The paper aims to study the effect of external managerial social networks on strategic flexibility for a quality management (QM) perspective. External social networks can affect strategic flexibility positively. QM also contributes to developing these networks. However, there is currently a wide variety of alternatives for managing quality in organizations, such as ISO standards or the European Foundation for Quality Management model. Thus, different alternatives will influence the external social networks differently in ways that have repercussions for strategic flexibility. Testing these differences is the main purpose of this paper. Design/methodology/approach – A total of 203 valid responses were classified in three groups: non‐QM, ISO, and total quality management (TQM) firms. Then, a comparative ANOVA analysis was performed to test differences among groups. Finally, different regressions were run to test the effects of external social networks (range, size and strength) on strategic flexibility depending of the observed group. Findings – Paper results show that, depending on which QM initiative is implemented in the organization, the effects of external managerial networks on strategic flexibility vary. Thus, in organizations without QM, the range of external social networks influences strategic flexibility negatively, whereas in organizations with ISO standards, this negative effect disappears. In organizations with TQM, the paper finds the positive effect of both size and strength of relations in the networks. Practical implications – The paper facilitates how to differentiate QM alternatives depending on their observed behavior. Originality/value – A new perspective (QM) is observed to test how managerial networks affect strategic flexibility.

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Managerial networks and strategic flexibility: A QM perspective

Author: Gutiérrez Gutiérrez, Leopoldo,Fernández Pérez, Virginia
Publisher: Emerald Publishing Limited
Year: 2010
DOI: 10.1108/02635571011077834
Source: https://digibug.ugr.es/bitstream/10481/53779/1/Gutierrez%20and%20Fernandez%20%282010%29%20IMDS.pdf
Manage ial ne wo ks and s a egic
lexibili y: A QM pe spec i e
Pape published in
Indus ial Managemen & Da a Sys ems
Full ci a ion o his publica ion:
Gu ié ez Gu ié ez, Leopoldo and Fe nández Pé ez, Vi ginia
(2010): “Manage ial ne wo ks and s a egic lexibili y: A QM
pe spec i e”. Indus ial Managemen & Da a Sys ems, Vol.110,
n.8, pp.1192-1214.
h ps://doi.o g/10.1080/02102412.2010.10779694
Thank you o you in e es in his publica ion.
Manage ial ne wo ks and s a egic lexibili y: A QM pe spec i e
L.J. Gu ie ez-Gu ie ez and V. Fe nández Pé ez
Depa men o Business Adminis a ion.
Ca uja s/n, 18071.
Uni e si y o G anada.
G anada; Spain
Abs ac
Pu pose – The pape aims o s udy he e ec o ex e nal manage ial social ne wo ks on
s a egic lexibili y o a Quali y Managemen pe spec i e. Ex e nal social ne wo ks can a ec
s a egic lexibili y posi i ely. QM also con ibu es o de eloping hese ne wo ks. Howe e ,
he e is cu en ly a wide a ie y o al e na i es o managing quali y in o ganiza ions, such as
ISO S anda ds o he EFQM model. Thus, di e en al e na i es will in luence he ex e nal
social ne wo ks di e en ly in ways ha ha e epe cussions o s a egic lexibili y. Tes ing
hese di e ences is he main pu pose o his pape .
Design/me hodology/app oach – 203 alid esponses we e classi ied in h ee g oups: Non-
QM, ISO and TQM i ms. Then, a compa a i e ANOVA analysis was pe o med o es
di e ences among g oups. Finally, di e en eg essions we e un o es he e ec s o ex e nal
social ne wo ks ( ange, size and s eng h) on s a egic lexibili y depending o he obse ed
g oup.
Findings – Pape esul s show ha depending on QM ini ia i e implemen ed in he
o ganiza ion, e ec s o ex e nal manage ial ne wo ks on s a egic lexibili y a y. Thus, in
o ganiza ions wi hou QM, he ange o ex e nal social ne wo ks in luences s a egic
lexibili y nega i ely, whe eas in o ganiza ions wi h ISO s anda ds, his nega i e e ec
disappea s. In o ganiza ions wi h TQM, we ind he posi i e e ec o bo h size and s eng h o
ela ions in he ne wo ks.
P ac ical implica ions – The pape acili a es how o di e en ia e QM al e na i es depending
on hei obse ed beha iou .
O iginali y/ alue – A new pe spec i e (QM) is obse ed o es how manage ial ne wo ks
a ec s a egic lexibili y.
Keywo ds – Ex e nal manage ial social ne wo ks, s a egic lexibili y, Quali y Managemen
ini ia i es
1. In oduc ion
In inc easingly unp edic able en i onmen s, o ganiza ions need he capaci y o ca y ou he
s a egic changes necessa y o ind imely solu ions o sol e he p oblems hey ace (Shimizu
and Hi , 2004). Abbo and Bane ji (2003) s a ed ha he es ablished pa adigm o
o ganiza ional s abili y and sus ainable compe i i e ad an age has limi ed applicabili y and
ha s a egic lexibili y sol es his p oblem. Among o he posi i e e ec s, we ind ha
s a egic lexibili y
1
gene a es be e o ganiza ional pe o mance (Abbo and Bane ji, 2003;
Nadka ni and Na ayanan, 2007).
As a esul o hei u bulence, cu en en i onmen s equi e mo e in o ma ion and
knowledge. Manage s hus play a c ucial ole (Ande son, 2008), as hey make he de e mining
1
Acco ding o Shimizu and Hi (2004, p.45), “s a egic lexibili y can be de ined as an o ganiza ion’s capabili y
o iden i y majo changes in he ex e nal en i onmen s (…), o quickly commi esou ces o new cou ses o
ac ion in esponse o change, and o ecognize and ac p omp ly when i is ime o hal o ese e such esou ces
commi men s”.
s a egic decisions o he o ganiza ion (McDonald and Wes phal, 2003; Zahee and Bell,
2005), using he esou ces ha each hem h ough hei social ne wo ks (Gele kanycz and
Hamb ick, 1997; Ruey-Kei and Jason, 2005). Tha is, ne wo ks p o ide a link be ween he
en i onmen and he o ganiza ion and condi ion he le el o adap a ion be ween hem.
Manage s’ ela ions o o he people ha e been widely ecognized as a c ucial de e minan o
accessing o in o ma ion (Ande son, 2008; McDonald, 1992, 1995). Social con ac s con ibu e
social capi al –bene i s esul ing om he social s uc u e ha o ganiza ions can mobilize o
acili a e ac ions (Alde and Kwon, 2002). Despi e his e idence, ew s udies ha e analyzed
he mechanisms by which social ne wo ks p oduce hese bene i s (Ande son, 2008; Reagans
and McE ily, 2003). Mos s udies assume hem causally, as an e ec o social s uc u e. Ou
esea ch es he nexus be ween he in o ma ional bene i s o ne wo ks and hei u ili y in
gene a ing mo e s a egic lexibili y and hus, e ec i e u iliza ion o in o ma ion in he o m
o o ganiza ional esponse. To explo e his ela ionship in g ea e dep h, we will s udy how
he di e en dimensions o ne wo ks (Collins and Cla k, 2003) can ha e di e en e ec s on
s a egic lexibili y, as hey con ibu e esou ces ha a e e y he e ogeneous in quan i y and
quali y. Ne wo k dimensions obse ed include size, ange and s eng h. Ne wo k size
ep esen s he o al g oup o links ha a pe son has wi h ano he ones, o al o in o ma ion
channels. Ne wo k ange ep esen s he di e si y o con ac s in a social ne wo ks, i is, he
a ie y o g oups (clien s, supplie s, e c.). The s eng h o he ies
2
is a mul i ace ed cons uc
consis ing o in e ac ion equency and he emo ional in ensi y o closeness o a bond
(G ano e e , 1973). The e o e, his s udy p oposes i s o analyze he ela ion be ween
ex e nal social ne wo ks o manage s and he o ganiza ion’s s a egic lexibili y. Findings will
con ibu e o he li e a u e on social ne wo ks in o ganiza ional beha iou by suppo ing and
2
In his pape s eng h o he ies, links o bonds a e conside ed as synonyms.
ex ending ou unde s anding o he issue o how social ne wo k s uc u e is linked he
ongoing p ocess o s a egic ac ion.
The second ask o his pape is o a emp o obse e empi ically he beha iou o he
ela ionships es ablished be ween he dimensions o ex e nal social ne wo ks and s a egic
lexibili y, depending on he QM ini ia i e de eloped in he o ganiza ion. The impo ance o
quali y managemen (QM) in cu en compe i i e en i onmen s has al eady been shown
(Kaynak, 2003; Nai , 2006; P ajogo and Sohal, 2006). In spi e o he impo ance o QM,
McAdam e al. (2008) and Mella -Pa as and Digman (2007) a gue ha he e is a need o look
a quali y managemen om he s a egic iew o he i m and we a gue he need o he
ne wo k pe spec i e. The e is a se ious lack o s udies ha analyze he ela ion be ween QM
p ac ices and ex e nal social ne wo ks. Thus, “ he e is no e idence on how he p inciples o
quali y managemen can be implemen ed wi hin a ne wo k o i ms” (Mella -Pa as and
Digman, 2007, p. 804). Mella -Pa as and Digman (2007) p opose ha o ganiza ions should
de elop a se o p ac ices, in his case QM p ac ices, which a e ad an ageous o ne wo ks o
i ms. A s udy like ha by Flynn and Flynn (2005) inds a posi i e ela ion be ween QM
p ac ices and he supply chain. O he s udies only p opose heo e ically he posi i e e ec s o
QM p ac ices on s a egic alliances (Mella -Pa as and Digman, 2007, 2008) o on he supply
chain (Lo e al., 2007).
The g ea e olu ion ha QM has unde gone in he las ew yea s has led o he cu en
exis ence o di e en op ions p oposed o implemen ing he p ac ices ha his philosophy
p oposes (Ga cía-Be nal e al., 2004; Kuma and An ony, 2008). Familia examples o hese
a e Quali y Con ol, he Ame ican Malcolm Bald ige Model, he Eu opean EFQM model,
ISO S anda ds and he mos ecen Six Sigma me hodology. As a esul , manage s ace a wide

ange o possibili ies o implemen ing QM in hei o ganiza ions (ISO s anda ds, TQM,
EFQM model, Malcom Bald ige, e c). In his espec , as a esul o he s udy, we seek o o e
i ms a c i e ion o di e en ia ion be ween h ee di e en al e na i es (non-QM, ISO
S anda ds and TQM
3
), based on he beha iou o social ne wo ks and s a egic lexibili y.
This esul will con ibu e o QM li e a u e es ing he ela ionship be ween he
implemen a ion o QM ini ia i es and ex e nal social ne wo ks e ec s beha iou .
In summa y, he goal o his pape is o s udy how he dimensions o ex e nal social ne wo ks
(size, ange and s eng h) a ec s a egic lexibili y in he i m and whe he he e a e
signi ican di e ences in hese e ec s depending on whe he he o ganiza ions ha e
implemen ed one QM ini ia i e o ano he . The pape is s uc u ed as ollows: a e his
in oduc ion, we p esen a li e a u e e iew ha co e s he ela ionship be ween ex e nal
social ne wo ks and s a egic lexibili y, and he ole o di e en QM ini ia i es in he
p e ious ela ionship. A e we e iew he li e a u e, we desc ibe he me hodology and he
analysis pe o med. Subsequen ly, we discuss he esul s ob ained and p esen he main
conclusions, limi a ions and ecommended di ec ions o u u e esea ch.
2. Theo e ical backg ound
2.1. Ex e nal social ne wo ks as s a egic lexibili y sou ce
The impo ance o i ms o adap ing o hei en i onmen s is well-known. One way o
achie e a good i is being s a egically lexible (Aake and Masca enhas, 1984; Volbe da,
1996). Wi hin he o ganiza ion’s dynamic capaci ies, lexibili y has become a capaci y c ucial
o he abili y o compe e (De Meye e al., 1989; Kos e e al., 2004; Llo éns e al., 2005).
Flexibili y is he s a egic op ion o si ua ions ha he i m canno an icipa e and in which
3
A he p esen ISO s anda ds a e he mos ex ended ini ia i e o QM (Magd and Cu y, 2003) and TQM, also
cons i u es a QM ep esen a i e ini ia i e as i is associa ed wi h o he al e na i es such us EFQM model (Van
Ma ewijk e al., 2004), Six Sigma (G een, 2006) o Malcom Bald ige model (Samuelsson and Nilsson, 2000).
he e is likely o be a s a egic su p ise (Volbe da, 1998). This pape ocuses on s a egic
lexibili y (Volbe da, 1996) as a s ong indica o o he i m’s capaci y o adap (Volbe da,
1996) and which has signi ican epe cussions o he i m’s pe o mance (Abbo and
Bane ji, 2003; Nadka ni and Na ayanan, 2007).
An o ganiza ion can c ea e s a egic lexibili y in many ways, o example, by de eloping
join sys ems be ween o ganiza ions and pa icipa ion in alliances o join en u es (Bu le
and Ewald, 2000; D ago, 1997). Manage ial social ne wo ks a e also sou ces o esou ces and
capaci ies (Baum e al., 2000; Gula i e al., 2000) ha can help he o ganiza ion o be mo e
lexible. In his a icle, we ocus on he ela ionship be ween social ne wo ks and s a egic
lexibili y, apa om o he ways o lexibili y, like ope a ional o s uc u al lexibili y
(Volbe da, 1997, 1998). This is because s a egic lexibili y is e e ed o he joined capaci ies
wi h he o ganiza ion´s goals and wi h he en i onmen al adap a ion o unusual changes
(Volbe da, 1998). The e o e, s a egic lexibili y is e y sensi i e and dependen on
in o ma ion ga he ing, as social ne wo ks.
The ole o ne wo ks as a pa h o accessing o in o ma ion has been shown in p io li e a u e
(Ande son, 2008; C oss and Sp oull, 2004; Mo ison, 2002). Accessing o in o ma ion
h ough social ne wo ks is usually a sou ce o po en ial oppo uni ies (Alde and Kwon, 2002;
Bu , 1992, 2004). Ne e heless, i someone wan s o ake ad an age wi h hese oppo uni ies,
i mus ake in o accoun , among o he cha ac e is ics, he abili ies (Bu e al., 1998) and
mo i a ion (Ande son, 2008) ha hei owne s ha e o use hem. Thus, we belie e ha he
e ec i e use o he esou ces, ha ne wo ks o e , is mo e signi ican o ou s udy because o
he essence o socie y lies in he ac ion p ocesses —no in he s uc u e o ela ions. No
s uc u e o ela ions is ele an wi hou ac ion (Blume , 1969).
In gene al, he li e a u e suppo s posi i e linkages among he access o manage s’
in o ma ion and hei ac ion epe cussions and he co po a i e ou comes (Dye and Singh,
1998). Mo eo e , many au ho s a i m ha social ne wo ks inc ease he abili y o espond o
unp edic able changes in hei compe i i e en i onmen s h ough he cons uc ion o new
capabili ies (C oss e al., 2001; Lee e al., 2001; Lessa d and Zahee , 1996; Liebeskind e al.,
1996) and beha iou al lexibili y (Zacca o e al., 1991). The quan i y and he quali y o
ob ained in o ma ion h ough he ne wo ks could be decisi e o e ec i e and quick
adap a ion o o an icipa ing o changing he en i onmen . Thus, i is logical o p opose a
nexus o in luence among hese a iables (social ne wo ks dimensions and s a egic
lexibili y).
The size and ange o he ne wo k and he s eng h o he links a e h ee p ima y a iables o
social ne wo ks s uc u es (Collins and Cla k, 2003; C oss and Cummings, 2004; Gabbay and
Leende s, 2001; Reagans and McE ily, 2003). Ne wo k size is impo an because each link
ha a pe son has ep esen s an in o ma ion channel. Ne wo k ange ep esen s he di e si y o
con ac s in social ne wo ks. When a manage ies o access in o ma ion o become awa e o
an issue, a g ea e numbe and di e si y o con ac s makes i mo e likely ha someone can
p o ide he in o ma ion he o she needs. The li e a u e sugges s ha la ge and di e se
ne wo ks gene a e a g ea e a ie y o pe spec i es and s imula e c i icism, gi en ha hey
ha e mo e access o new and di e se in o ma ion (Bu , 1992). When i akes in o accoun he
opinions o di e en audiences, e e y people a e be e p epa ed o an icipa e di e en
con ingencies (Bu , 2004; McDonald e al., 2008; Reagans and Zucke man, 2001). I can
a ou he eme gence, combina ion o ecombina ion o good and new ideas and ac ions
(Obs eld, 2005). La ge and di e se ne wo ks ha e g ea e capaci y o ga he in o ma ion han
small ones (Bu , 1982; G ano e e , 1973). In his sense, execu i es who use mo e sou ces
o in o ma ion ha e g ea e access o compe i i e ideas and oppo uni ies and be e esul s
(Dussauge e al., 2000; McE ily and Zahee , 1999; Zahee and Bell, 2005; Zahee and
Zahee , 1997). We can hus p opose he ollowing hypo heses:
H1: Ex e nal social ne wo ks o manage s ha ha e a g ea e size a e ela ed posi i ely
o some g ea e le els o s a egic lexibili y in o ganiza ions.
H2: Ex e nal social ne wo ks o manage s ha ha e a g ea e ange a e ela ed
posi i ely o some g ea e le els o s a egic lexibili y in o ganiza ions.
Ano he key concep o ne wo ks ha a ec s in o ma ion lows is he s eng h o he links.
S ong ne wo ks acili a e he exchange o de ailed in o ma ion (K ackha d , 1992; Uzzi,
1996), due o he ac ha hese ne wo ks a e cha ac e ized by equen in e ac ion, a common
his o y and mu ual us (Anand and Khanna, 2000; G ano e e , 1982, 2005). This means
ha hey equi e mo e main enance, which implies ha he olume o in o ma ion will be
smalle , al hough highe in quali y (Dye and Nobeoka, 2000). This usually b ings be e
esul s (Lo enzoni and Lippa ini, 1999; Zahee e al., 1998) and compe i i e capaci ies
(McE ily and Ma cus, 2005).
Gi en he o egoing, his pape p oposes ha manage ial social ne wo ks p o ide g ea e
le els o access o in o ma ion and highe -quali y in o ma ion. Thus, i can be ela ed o
e ec i e and apid s a egic ac ions, gene a ing g ea e o ganiza ional s a egic lexibili y.
This leads us o a icula e he ollowing hypo hesis:
50%. Values ob ained in he analysis we e highe han he es ablished minimums (Howell,
1987; Hulland, 1999; Szulanski, 1996), so con e gen and disc iminan alidi y we e
gua an eed.
Classi ica ion a iable: Implemen a ion o quali y managemen ini ia i es
To iden i y he implemen a ion o quali y managemen ini ia i es, he ques ionnai e included
a lis o he di e en al e na i es (non-QM, ISO S anda ds and TQM). The i ms would
choose he ini ia i es ha hey had unde way.
Con ol a iables: Incomes
La ge companies ha e a g ea e numbe o ad an ages due o hei esou ces (Ba ney, 1991).
The e o e, we include annual sales incomes as con ol a iable. Di e en income le els a ec
o he in o ma ion equi ed om ex e nal ne wo ks, o ca y on lexible beha iou s and o QM
implemen a ion.
4. Da a analysis
4.1. Sample dis ibu ion
We began he in es iga ion by di iding he o al sample ob ained (n=203) in o h ee g oups.
Fo he i s g oup, we selec ed i ms ha did no choose any o he quali y managemen
ini ia i es included in he ques ionnai e. Non-QM i ms g oup was composed o 73
o ganiza ions. The second g oup included o ganiza ions ha had implemen ed only he ISO
s anda ds. This second g oup (ISO i ms) was o med o 67 o ganiza ions. Finally, in he hi d
g oup we included hose i ms ha had chose he TQM ini ia i e o he EFQM model, ha ing
o no he ISO s anda ds implemen ed. This g oup (TQM i ms) was composed o 63
o ganiza ions. Table I includes g oup dis ibu ion, means, s anda d de ia ions, medians,
maximum and minimum o each obse ed a iable. Fo all ou a iables obse ed, highes

means alues a e associa ed wi h TQM i ms g oup, ollowed by Non-QM i ms g oup and
inally by ISO- i ms g oup. This aspec will be conside ed in he discussion sec ion.
Dis ibu ion o numbe o employees and annual sales is also included in Table I o comple e
in o ma ion abou he h ee g oups obse ed.
Inse Table I abou he e
4.2. ANOVA analysis
Once he sample was dis ibu ed in o he h ee g oups desc ibed, using he s a is ical p og am
SPSS 15.0, we pe o med an ANOVA analysis o he means o he h ee g oups ela i e o all
obse ed a iables “size”, “ ange” and “s eng h” o ex e nal social ne wo ks and s a egic
lexibili y. This es enabled us o obse e i he obse ed a iables gene a e signi ican
di e ences among he h ee g oups. Independence and homocedas ici y o esiduals we e
con i med. Since he esiduals ha e a no mal dis ibu ion, he a iables obse ed, also a e
no mally dis ibu ed. The esul s o he compa isons o means a e shown in Table II. All
a iables, size (F=7.822; p=.001), s eng h (F=6.793; p=.001), ange (F=6.931; p=.001) and
s a egic lexibili y (F=15.025; p=.000) gene a es signi ican di e ences be ween g oups.
Inse Table II abou he e
4.3. Reg ession analysis
In o de o con as he hypo heses 1, 2 and 3, we p oceed o s udy he ela ions o he
a iables amongs hemsel es. To achie e his, we pe o m a eg ession analysis by s eps o
each o he g oups. Be o e pe o ming his analysis, we assessed he assump ions o mul iple
eg ession analysis. Thus, linea i y, homoscedas ici y, no mali y and mul icollinea i y
assump ions we e obse ed. Resul s showed ha all hese assump ions could be checked.
Table III shows he esul s o he eg ession analysis o he independen a iables size,
s eng h and ange and he dependen a iable s a egic lexibili y, o each o he g oups
analyzed. Independen a iable “Incomes” is used as con ol a iable. The e is no any
signi ican di e ence be ween g oups. The e o e, income le el is no de e mining ac o o
lexibili y le el, independen ly o QM ini ia i e implemen ed. As we can see, he a iable
“size o ne wo k” was included as a signi ican a iable in he h ee eg essions ( =6.801,
p=.000; =3.218, p=.002; =3.576, p=.001, o non-QM g oup, ISO g oup and TQM g oup
espec i ely). Thus, Hypo hesis 1 o size ounds s ong suppo . Howe e , he e a e
di e ences in he o he a iables. Thus, in addi ion o size, o Non-QM g oup, he ange
exe cises a nega i e and signi ican in luence on s a egic lexibili y ( =-2.882, p=.005). I we
s udy ISO g oup and TQM g oup, his signi ican in luence does no occu . Hypo hesis 2 o
ange is suppo ed o only non-QM i ms. Finally, TQM g oup adds a posi i e and
signi ican e ec o s eng h on s a egic lexibili y ( =2.566, p=.013). Hypo hesis 3 o
s eng h is suppo ed o only TQM g oup. We ind ha ex e nal social ne wo ks in luence
o ganiza ional s a egic lexibili y posi i ely h ough hei dimensions, excep in he i s case,
whe e he ange has a nega i e in luence. . On he o he hand, he e a e di e ences in he
e ec s o he a iables “size”, “s eng h” and “ ange” on s a egic lexibili y, depending on
he quali y ini ia i e implemen ed in he o ganiza ion. Based on his esul , we can suppo
Hypo hesis 4. Figu e II ep esen s g aphically all he signi ican e ec s con as ed in he
ela ionships be ween a iables, acco ding o g oups obse ed.
Inse Table III abou he e
Inse Figu e II abou he e
5. Discussion
In u bulen en i onmen s like he p esen one, s a egic lexibili y helps o ganiza ions o
con on hei changes in an oppo une and e icien way and acili a es he o ganiza ion’s
adap a ion o ans o ma ion i necessa y (Nadka ni and Na ayanan, 2007; Shimizu and Hi ,
2004). Ex e nal manage ial social ne wo ks can aid, since hey con ibu e, as has been
demons a ed in his esea ch, o he gene a ion o such lexibili y. This shows he alue o
ocusing on he composi ion, de elopmen and e olu ion o he o ganiza ion’s manage ial
social ne wo ks (Hallikas e al., 2008), since he ex en o hei e ec s can condi ion key
capabili ies o he o ganiza ion (Campbell-Kelly e al., 2008) and in luence hei
compe i i eness (Wu, 2006). In e ela ions wi h o he social agen s enable hem o acqui e a
join ision o hei mul iple demands and poin s o iew (De Cle cq and Dimo , 2008), and
hey a e ensu ed excellen oppo uni ies o ake ad an age o expe ience, knowledge o simply
in o ma ion om hese agen s ha can be use ul o hem (Dye and Nobeoka, 2000, Acquaah,
2007). Besides, ou esul s lead o impo an manage ial implica ions, a ec ing hei s a egic
decisions and, consequen ly, o ganiza ional pe o mance. These conclusions sugges ha
speci ic ne wo k-building p ac ices may be an e ec i e means o i ms o pu pose ully
manipula e he ne wo ks o hei op manage s.
Ex e nal social ne wo ks o manage s and o ganiza ional s a egic lexibili y
Inc eased ins abili y in mos indus ies means ha con ac s ( he in o ma ion and knowledge o
e e ences ha hey ansmi o us) can o m he basis o a compe i i e ad an age (Gula i e
al., 2000; Mo an, 2005). This ac is demons a ed in ou empi ical s udy, since we see ha
ne wo k size has a posi i e, di ec and signi ican e ec on s a egic lexibili y in all g oups.
S eng h o he ne wo ks in TQM i ms also has his posi i e e ec . This in o ma ion ells us
ha he p ope combina ion o all o he dimensions can op imize he esul s (Gilsing and
Duys e s, 2008), as hey con ibu e di e en bu in e es ing bene i s. In gene al, ou
in o ma ion ein o ces he impo ance o con ac s, which can come o be c ucial s a egic
asse s, e en in p ospe ous o s able si ua ions (Kang, 2008). I is wo h men ioning he case o
o ganiza ions ha ha e no ini ia i e o quali y managemen , which show a nega i e and
signi ican ela ion be ween ange and s a egic lexibili y. We will discuss his p oblem la e .
Ex e nal social ne wo ks o manage s, o ganiza ional s a egic lexibili y and QM
ini ia i es
In compa ing he h ee g oups c ea ed (ANOVA analysis), we i s ind ha he le el o
s a egic lexibili y de eloped is di e en in each case. I we compa e he g oup o non-QM
and ISO i ms (4.21 and 4.12, espec i ely), s a egic lexibili y is qui e simila be ween bo h
g oups. In he case o he g oup o TQM i ms, we see ha s a egic lexibili y is de eloped o
a much g ea e ex en (5.01), han in he o he wo cases. Acco ding o he heo e ical
easoning ollowed, i seems logical ha a lowe deg ee o de elopmen o he QM elemen s
leads o a lowe deg ee o de elopmen o s a egic lexibili y, as occu s in he g oup o non-
QM i ms. Howe e , such esul s would be su p ising in he case o ISO- i ms. I we begin
wi h he TQM- i ms, Rajagopal e al. (1995) shows TQM o be a me hod ha imp o es
o ganiza ional e icacy and lexibili y. Con inuous imp o emen and o ien a ion o he
cus ome make o ganiza ions mo e sensi i e o changes in he en i onmen (Hackman and
Wageman, 1995), enabling hem o adjus be e o he demands o he en i onmen (Yousse
e al., 1996; Zai i, 2002), hus making hem mo e lexible (Gómez-G as and Ve dú, 2005;
Llo éns e al., 2004). Empi ically, he posi i e ela ion be ween TQM and lexibili y has been
demons a ed (Gómez-G as and Ve dú, 2005; Lin and Chang, 2006; Llo éns e al., 2004;
Me ino-Díaz, 2003). Howe e , some ime ago, Manz and S ewa (1997) p esen he
possibili y associa ed wi h a case o quali y managemen . The s anda diza ion and con o mi y
p oposed by QM (no TQM) can make he i m s a ic. One example o his si ua ion could be
ISO S anda ds. Lundma k and Wes elius (2006) analyzed Swedish SMEs ha had been
ce i ied wi h bo h he 1994 and hen he 2000 ISO S anda ds. The g ea es p oblem ha hey
encoun e ed was he excessi e bu eauc acy associa ed wi h he no m, which acco ding o
manage s can lead o educed lexibili y. Ou esul s poin o his line o in es iga ion. I is
impo an , he e o e, o di e en ia e explici ly be ween ISO S anda ds and TQM, as he e a e
signi ican di e ences like hose we ha e jus obse ed. The e o e, as his is no he i s
esea ch showing ha ISO s anda ds lead o a lowe le el o lexibili y han o he ini ia i es,
such as TQM, manage s should conside ed his ac when hey e alua e di e en al e na i es
o implemen QM in hei o ganiza ions. Comple ing his in o ma ion o manage s,
signi ican di e ences obse ed be ween h ee g oups, shows ha TQM i ms, also a e hose
wi h highes le el o ex e nal ne wo k dimensions. ANOVA analysis showed signi ican
di e ences be ween he h ee g oups in all a iables obse ed o ex e nal ne wo k (size,
s eng h and ange). Di e ences a e mo e signi ican compa ing TQM- i ms g oup wi h Non-
QM g oup and ISO- i ms g oup, as happened wi h s a egic lexibili y. TQM o ganiza ions
seem o be mo e in ol ed o QM, wi h highe le els o QM s uc u al elemen s (Gu ié ez e
al, 2010), and as a esul , aspec s such us ex e nal ne wo ks o s a egic lexibili y imp o e.
All hese di e ences lead o impo an manage ial implica ions. As we ha e obse ed, a he
p esen , manage s ace a wide ange o possibili ies o implemen ing QM in hei
o ganiza ions (TQM, ISO s anda ds, Six Sigma, e c). Ou conclusions may help hem wi h
his kind o decision, as he ac ha TQM i ms de elop o a g ea e ex en s a egic

lexibili y and ex e nal ne wo ks dimensions, is an impo an aspec ha should be conside
when TQM al e na i e and ISO s anda ds al e na i e a e compa ed.
In ela ion o he e ec s o he dimensions on lexibili y, he dimension o size a ec s
s a egic lexibili y posi i ely in he h ee g oups obse ed. As we es ablished, a g ea e
numbe o con ac s gene a es a highe numbe o poin s o iew, which con ibu es o
knowing mo e ideas and c ea ing new ones (Bu , 1992; Obs eld, 2005).
S eng h has a s ong posi i e e ec on s a egic lexibili y in TQM i ms. These
o ganiza ions a e cha ac e ized by de eloping QM p ac ices o a g ea e ex en han hose
belonging o he o he wo g oups. The li e a u e has indica ed he posi i e e ec o QM on
ne wo ks, h ough p ac ices such as us , leade ship, p ocess managemen , lea ning, e c.
(Flynn and Flynn, 2005; Lin e al., 2005; Mella -Pa as and Digman, 2007, 2008). S eng h is
de eloped signi ican ly o a g ea e ex en in TQM i ms han in ISO i ms o non-QM i ms
(see Table 1), cons i u ing an example o QM’s con ibu ion o ex e nal ne wo ks. Fo
example, we ha e men ioned he impo ance o us , a key elemen in TQM in o ging s ong
ela ions (La son, 1992; Dye and Nobeoka, 2000; Lo enzoni and Lippa ini, 1999; Zahee e
al., 1998). On he o he hand, s ong ne wo ks equi e de ailed in o ma ion exchange
(K ackha d , 1992; Uzzi, 1996) cha ac e ized by equen in e ac ion (G ano e e , 1982).
This s udy has shown ha TQM i ms gene a e g ea e s eng h in ex e nal social ne wo ks
h ough hei s uc u al p ac ices, including supply managemen , coope a ion, benchma king,
knowledge sha ing o lea ning, de elop s onge ex e nal social ne wo ks, which con ibu e
signi ican ly o o ganiza ional s a egic lexibili y.
Finally, i is impo an o pause o e he nega i e e ec de ec ed in he case o he dimension
“ ange” o non-QM i ms. This esul implies ha , as he di e en ca ego ies o agen s wi h
which we associa e inc ease, s a egic lexibili y dec eases. P io s udies ha e analyzed he
ange wi hin speci ic ca ego ies, such as manage s (Gele kanycz and Hamb ick, 1997;
McDonald e al., 2008), cus ome s (Pa k and Lou, 2001), p o ide s (Peng and Lou, 2000) and
compe i o s (Von Hippel, 1988). Among hese, di e si y is usually posi i e, as i helps o
p opose inno a i e s a egies o ideas ha di e om he ideas al eady in use (McDonald and
Wes phal, 2003; Reagans and McE ily, 2003). Howe e , when one akes in o accoun many
di e en ca ego ies o agen s a one ime, dispe sion can be coun e p oduc i e. A g ea e
ange implies a g ea e numbe , complexi y and e en jux aposi ion o ideas and in o ma ion
ecei ed. This can lead o immobili y o delayed eac ions (Simon, 1959; Szulanski, 1996).
Al hough a ie y inc eases he ange o he o ganiza ion’s po en ial beha iou s, i can also
c ea e con usion and gene a e cos s (Bo ga i and C oss, 2003). Thus, his esul can be due o
he high numbe o ca ego ies o di e en agen s ha we e used. Howe e , in obse ing he
ange in he o he wo g oups, we con i m ha —in spi e o he ac ha i is lowe o he
g oup o ISO- i ms and highe o he g oup o TQM- i ms—i s in luence is no signi ican ly
nega i e o any o he cases. Wha we can obse e is ha he alue o he R2 shows a
dec ease in he impo ance o he e ec o he dimensions o ex e nal social ne wo ks on
s a egic lexibili y when we mo e om non-QM i ms o ISO- i ms o TQM- i ms. This
esul shows ha he e ec o ex e nal social ne wo ks on s a egic lexibili y has much mo e
weigh in he non-QM i ms. An explana ion o his could be ha as Shimizu and Hi (2004)
showed he e a e a se ies o ac o s ha exe cise a e y impo an in luence on s a egic
lexibili y, such as s a egic leade ship, c ea ing dynamic mechanisms o gain new ideas,
s imula ing decision-making p ocesses, measu ing and moni o ing decision ou comes,
lea ning, e c. These ac o s a e clea ly associa ed wi h QM and co espond mo e closely o he
ISO- i ms and TQM- i ms han o he non-QM i ms. This jus i ies he loss o impo ance o
ex e nal social ne wo ks is à is he o he aspec s. Fu u e lines o esea ch could ocus on
his p oblem.
6. Limi a ions and u he esea ch
Among he limi a ions o ou s udy, we mus include he ac ha QM al e na i e
implemen a ion is obse ed using a single i em, ins ead o a compound cons uc . The sample
o i ms is no dis ibu ed uni o mi y acco ding o he numbe o employees and annual sales
incomes. Toge he wi h he c oss-sec ional cha ac e o he esea ch, his ac o somewha
limi s gene aliza ion om hese esul s. Thus, longi udinal esea ch ha analyses a g ea e
numbe o cases and ha obse es e ec s on di e en kinds o o ganiza ions could en ich he
li e a u e on he ex e nal social ne wo ks and quali y managemen ini ia i es.
Fu he , one could analyze in e nal manage ial social ne wo ks, as well as hose es ablished
be ween wo ke s hemsel es, o de e mine hei e ec s on he gene a ion o di e en dynamic
capabili ies. We in ui ha hese a e a signi ican di ec and mode a ing a iable, as hey
would in luence he le els o cap u ing, c ea ing and ans o ming esou ces. On he o he
hand, one could s udy he in luence o he social ne wo ks on he di e en kinds o lexibili y
(s a egic, s uc u al and ope a i e). This would deepen ou unde s anding o he in luences o
manage ial ne wo ks on s a egic and s uc u al le els, as well as he e ec s o he ne wo ks
wi h wo ke s and he in luence o ne wo ks be ween wo ke s on le els o ope a ional
lexibili y. Finally, es ablishing di ec mul iple compa isons be ween hese (ISO and TQM)
and o he QM ini ia i es (EFQM model, Quali y Con ol, Lean Manu ac u ing) could b ing
deepe unde s anding o hei unc ioning, helping manage s di e en ia e be ween hem.
7. Conclusion
This pape has a emp ed o obse e he e ec o ex e nal social ne wo ks on o ganiza ional
s a egic lexibili y. I also includes he ac o o quali y managemen and how his e ec can
be in luenced by he kind o quali y managemen ini ia i e ha o ganiza ions a e
implemen ing. The esul s ob ained indica e he exis ence o a posi i e global e ec o
ex e nal social ne wo ks on s a egic lexibili y, mainly h ough hei dimension o size. Thus,
la ge ex e nal social ne wo ks con ibu e posi i ely o s a egic lexibili y.
The s udy also p o ides e idence ha ex e nal ne wo ks se e as impo an in o ma ional
esou ces o i ms. F om a p ac ical s andpoin , i appea s ha i ms may be able o
pu pose ully de elop and manage he ne wo ks o hei op manage s. Howe e , since
di e en ne wo k cha ac e is ics a ec i m pe o mance di e en ly, companies should be
ca e ul o c ea e he ne wo k cha ac e is ics ha a e mos likely o a ec pe o mance in hei
pa icula en i onmen al con ex .
On he o he hand, i we di ide he sample in o non-QM i ms, ISO- i ms and TQM- i ms, we
can d aw wo impo an conclusions. Fi s , TQM- i ms de elop all o he dimensions o
ex e nal social ne wo ks and s a egic lexibili y o a g ea e ex en . This does no occu o
non-QM and ISO- i ms. We can explain his esul h ough he isk o excessi e bu eauc acy
associa ed wi h ISO S anda ds. Second, we see ha he impo ance o he in luence o he
dimensions o ex e nal social ne wo ks on s a egic lexibili y dec eases signi ican ly when
we mo e om non-QM i ms o ISO- i ms and TQM- i ms, wi h o he ac o s inhe en in
hem, such as s a egic leade ship, lea ning o s imula ing decision-making p ocesses,
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