Natural hazard-prone countries in the global south adopted an anticipatory-preparedness approach in disaster risk reduction (DRR) by shifting away from the response and rehabilitation approach. It was highly associated with the policy recommendations of the United Nations Office for Disaster Risk Reduction (UNDRR) framework. Nevertheless, challenges remained in managing disaster risks due to heterogeneous efficiency among disaster managers. This research examines the institutional effectiveness of the disaster management agency in cyclone-prone areas in southwestern coastal Bangladesh through network analysis. This research also explores institutional efficiency's impact on household preparedness in mitigating losses. We collected two distinct data sets from the local Union Disaster Management Committee (UDMC) and households in the same operational area of UDMC that were at risk of cyclonic disasters. To evaluate the effectiveness of local disaster management institutions, we conducted structured interviews with 336 representatives, spanning eight UDMCs in the cyclone-prone regions. To assess the impact of institutional performance (specifically, the UDMCs) on household disaster preparedness and loss mitigation, we collected data from 696 at-risk households. These households were located within the operational zones of the eight UDMCs, and the data was obtained using a structured questionnaire. Based on the application of social network analysis, our findings demonstrated that UDMC members were more active in the aftermath of disasters, as confirmed by three centrality measures - degree, eigenvector, and betweenness. Consequently, upon employing the Negative Binomial and Poisson regression models, we found a positive association between household engagement with UDMCs and participation in disaster preparedness training. This training appeared to enhance the knowledge and capacity of the respondents. The spill-over effects from disaster preparedness appeared to bolster the resilience of at-risk households, assist them in avoiding disaster-induced damages, and maintain consumption stability in the wake of disasters.