External Managerial Networks, Strategic Flexibility and Organizational Learning : A Comparative Study Between Non-QM, ISO and TQM Firms

This paper studies the effect of external managerial social networks on strategic flexibility and organizational learning, considering three groups of analysis (Non-QM, ISO and TQM firms). At the present, there is a wide variety of alternatives for managing quality in organizations, such as ISO Standards or the EFQM model. Thus, different alternatives will influence the external social networks differently, affecting strategic flexibility and organizational learning, as literature on external social networks suggests that they can affect strategic flexibility and organizational learning positively. Through a comparative ANOVA analysis and step-wise regressions, we observe that external social networks affect strategic flexibility and organizational learning positively, primarily through greater size of the networks. On the other hand, we find that, depending on the QM initiative implemented in the organization, other effects vary. For example, 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, we find the positive effect of both size and strength. For organizational learning, a negative relationship between this capability and network range was found for Non-QM firms group. These relationships turned positive for TQM firms group