The Moderating Role of Supply Network Centralities: Three Essays of Institutional Environments and Firm Performance

Institutional environments not only guide organizations’ behaviors and strategic activities but also influence organizational performance. Although they are powerful drivers of organizational performance, some organizations can achieve superior performance than their peers. The goal of this dissertation is to better understand the effect of institutional environments on firm performance and the moderating role of supply chain network centralities. Included is a multi-level investigation through three essays that explores the moderating effects of supply chain network centralities on the relationships between government contracting, industry regulations, and corporate executive social networks on firms’ financial and social performances. The empirical analysis in Essay 1 presents that government contracting bolsters suppliers’ short-term financial performance, which nonetheless negatively affects long-term performance. Supply chain network quality, measured as eigenvector centrality, ameliorates the negative effect of government contracting on long-term performance. Network quantity, measured as degree centrality, demonstrates a negative moderating effect. Essay 2 reveals that there is an inverted U-shaped relationship between industry policies and industry productivity. This relationship is flattened when the industry network quality is higher. Essay 3 shows that firms’ engagement in corporate social responsibility is lower when CEOs have prominent network positions. However, the negative influence of CEO network prominence on corporate social responsibility is weakened when firms have higher supply chain network prominence, material and financial flows. In summary, this research makes unique contributions to the supply chain management and network analysis literature by postulating the dynamic relationships among the individual-, firm-, and industry-level networks.