What is it about?

Using a sample of road construction firms, this study shows the importance of project complexity and social capital (network relationships with other firms) to performance outcomes. Networks can influence both financial and time-based outcomes in complex ways.

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Why is it important?

Scholars often only see how social capital, which is based on network relationships with other firms, is a positive for performance outcomes. We show how in project-oriented firms (e.g., road construction firms), maintaining and utilizing relationships can lead to complex and mixed outcomes.

Perspectives

This is an important step forward in understanding how networks are utilized in project-based organizations. The findings demonstrate a much more complex situation that warrants more consideration by managers when making firm relationship decisions.

Dr G. Tyge Payne
Texas Tech University

Read the Original

This page is a summary of: Project Complexity and Bonding Social Capital in Network Organizations, Group & Organization Management, May 2016, SAGE Publications,
DOI: 10.1177/1059601116650556.
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