個案資料

Building networks is widely encouraged as a means to improving productivity and profits. But does having an extensive list of contacts really result in better performance for an organization? When looking at the data-rich world of the National Basketball Association (NBA), the answer is no. The author’s research examined every NBA player transaction from 1977 to 2010 and worked out which managers used their contacts to sign players and which managers didn’t. Teams that used their manager’s contacts to sign players performed five per cent worse than those that didn’t, and that was after factoring in the quality of the team, club budgets, and a host of other influences. Indeed, while relying on contacts saves time and money in the short term, it can be seriously harmful on and off the basketball court. When entering a business transaction, managers must objectively seek the best people for the job, keeping the long-term interests of the firm in mind. That means being able to weigh their contacts against outside candidates in every situation. Building in time for a proper tendering process often saves on costs in the long run by producing better outcomes for the company. If a firm finds its managers relying on contacts to save on search costs, it must assess this situation. Monitoring how managers use their contacts may cost time and money, but it can also mean the difference between being a market champion or just an also-ran.

• Networking
• business contacts
• hiring
• talent search
• professional sports
• National Basketball Association