Assessing the effect of social networks among Mexican enterprises : A comparison of dairy processing firms in the state of Chihuahua

Purpose – This purpose of this paper is to test if social network theory applies in a developing country like Mexico. A set of Mennonite milk processors is tested against non‐Mennonite milk processors along five dimensions of firm performance. Design/methodology/approach – A sample of 61 milk processing firms is tested utilizing logistic regression where regression variables are financial fluidity, number of employees, age of the enterprise, productivity and efficiency, and other business related difficulties. Findings – It appears that social network theory in the form of religious ties, applies in Mexico as it does in much different industrialized economies that have typically been the setting for previous tests of social network theory. Research limitations/implications – Secondary data rather than primary data were used for this test, as a result, the usual battery of tests on research variables that ascertain validity and reliability could not be conducted. Moreover, the data covered only milk processors in northern Mexico. Practical implications – It would appear that organizations might benefit from the open observance of religious practice at work, contrary to the secular approach of the past. Originality/value – This paper may represent one of the first tests of network theory utilizing religious ties in Mexico.