A Moderated-Mediation Examination of TMT Social Capital, Competitive Behavior, and Firm Performanc

Abstract

This study examines the relationships between TMT internal social capital, competitive behavior, and firm performance while considering climate for cooperation with competitors and environmental dynamism. Research results based on a large sample collected from 829 executives in 219 firms in two Chinese economies, namely Taiwan and Mainland China, show that TMT internal social capital exerts a positive effect on competitive aggressiveness, especially in low coopetition and less dynamic situations. Competitive aggressiveness also plays a prominent mediating role in converting TMT internal social capital into advantageous performance outcomes. Moreover, moderated mediation analyses show that the mediating role of aggressiveness is more salient in both low cooperation-with-competitors climate and less dynamism situations. The research contributes to the competitive dynamics and upper echelons theories by revealing the significance of competitive initiatives in linking TMT social dynamics concerns with firm performance outcomes within the context of a firm??s interface with its competitors and organizational environments.