Managerial Networks and Strategic Flexibility : A QM Perspective

Purpose – The paper aims to study the effect of external managerial social networks on strategic flexibility for a Quality Management 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 EFQM 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 – 203 valid responses were classified in three groups: Non-QM, ISO and 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 QM initiative implemented in the organization, 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, we find 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 behaviour.Originality/value – A new perspective (QM) is observed to test how managerial networks affect strategic flexibility