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Interaction Effects of CEOs’ Cross-Industry Experience and Social Networks on Corporate Innovation: Evidence from China’s Hotel Industry

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Drawing on survey data from 161 hotel CEOs in China, this study examines how CEOs’ cross-industry experience and their social networks jointly shape corporate innovation in the hotel industry. Specifically, the results show that the interaction between CEOs’ cross-industry experience and social network depth is positive, such that this experience is more strongly associated with innovation when CEOs are embedded in deeper social networks. In contrast, the interaction between CEOs’ cross-industry experience and social network breadth is negative, though marginally significant, indicating that broader social networks do not enhance innovation and may weaken the innovation benefits of this experience. These findings contribute to both the upper echelons and social network literatures by showing that the innovation implications of CEOs’ cross-industry experience depend on how it is combined with different structural features of their social networks.

Abstract

Drawing on survey data from 161 hotel CEOs in China, this study examines how CEOs’ cross-industry experience and their social networks jointly shape corporate innovation in the hotel industry. Specifically, the results show that the interaction between CEOs’ cross-industry experience and social network depth is positive, such that this experience is more strongly associated with innovation when CEOs are embedded in deeper social networks. In contrast, the interaction between CEOs’ cross-industry experience and social network breadth is negative, though marginally significant, indicating that broader social networks do not enhance innovation and may weaken the innovation benefits of this experience. These findings contribute to both the upper echelons and social network literatures by showing that the innovation implications of CEOs’ cross-industry experience depend on how it is combined with different structural features of their social networks.

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