Top Managerial Oversea Social Capital, Firm Network Position and Innovation: The Mediating Effect of Prestige and Power from Firm Network Position

Abstract

In this article, we draw on the perspective of “embeddedness” with the resource dependence theory and social network theory to explore the relationship between oversea social capital, enterprise network advantageous position (“prestige” and “power”) and innovation capability by employing 1533 listed companies’ interlocking directorate network statistics among 2009-2013. The results show: 1) top managerial oversea social capital has a significant positive effect on enterprises’ innovation capability; 2) top managerial oversea social capital has a positive effect on obtaining the enterprise network advantageous position (prestige an power); 3) enterprise network advantageous position (prestige an power) has a mediating effect on the relationship between oversea social capital and innovation capability; 4) top managerial governmental social capital has a positive moderating effect on the relationship between oversea capital and innovation capability. This research enriches researches on how does top managerial oversea social capital transfer into innovation capability, and explores the collaboration mechanism of oversea social capital and domestic governmental social capital on improving enterprises’ innovation capability. This article provides both theoretical and practical implications on the future research on how to transfer top managerial oversea social capital into innovation capability improvement.