How managerial ties influence firm performance in China: A perspective of sensemaking

Managerial ties may have positive impact on a firm performance. However, it´s still unclear how managerial ties influence the decision-making of top managers and a firm performance. This article explores the relationship between managerial ties and firm performance by introducing a mediator of managerial sensemaking based on a survey of 243 firms in China. The empirical results indicate that managerial ties with actors in both market and nonmarket environments have the same important positive impact on firms´ performance. Furthermore, two types of managerial ties are beneficial for strengthening their ability of sensemaking so as to improve firms´ performance.