Harvesting Value from Brokerage: Individual Strategic Orientation, Structural Holes, and Performance

Abstract

In this paper, we explore the mechanisms underpinning returns to brokerage positions by considering the role of individuals’ strategic orientation toward brokering. We conceptualize individuals’ strategic orientations in terms of arbitraging versus collaborating behaviors enacted when occupying a brokerage position. Leveraging a novel data set collected in a global consumer product company, we theorize and find evidence for the fact that arbitraging and collaborating orientations have differential effects on the relationship between brokerage and performance, significantly impacting on individuals’ ability to extract value from brokerage. We discuss the implications of these findings for the structural analysis of informal networks in organizations.