Influence of Network Structure Hole of Senior Managers on the Competitive Advantages of MSMEs in China

Abstract

The objectives of this research were to study the factors of structural holes in senior managers’ consulting network, the determinant of MSMEs’ competitiveness, and the correlation between the benefits from structural holes and the competitiveness of MSMEs. This quantitative research used questionnaires to collect data from senior managers of MSMEs in the People's Republic of China. Independent variables were composted of two dimensions of structure hole including richness and diversity while dependent variable was ability of the managers to deal with sudden difficulties and industrial policy changes. Pearson Correlation and One-Way ANOVA were employed to test the relationships amoung the variables. The findings of this study revealed that there was a significant relationship between structural holes in senior managers’ consulting network and MSMEs’ competitiveness. The findings also showed the intrinsic value of structural hole in top managers’ consulting network, providing a new perspective about about how MSMEs could survive and develop in the current highly market competition situation of the People's Republic of China. It also provides a theoretical and practical reference for high-level managers in how to choose, shape and optimize their social networks, in order to increase the competitiveness, to achieve the developmet of MSMEs.