Managerial Social Networks Affect on Firm Performance: A Research in Five Star Hotels

The purpose of this study is to examine the relationship between external social networks and firm performance. For this purpose, the sample and method of research were determined. The effect of the characteristics of top manager's social networks, such as the network size and the strength of ties, on firm performance, was measured. The data came from the survey completed by the top managers of five-star hotels in İstanbul and Antalya. First, explanatory factor analysis (AFA) for the construct validity of the scales and then reliability analysis (Cronbach's alpha) were performed in the study. The regression analysis was used for methodology. According to the results, there is no relationship between the network size and firm performance. There is a positive correlation between the strength of the ties and firm performance. Furthermore, we found that there is a positive correlation between ties with government officials and firm performance. Both findings support and extend social network theory and firm performance literature.