Lecture 2 - Network Structure & Network Performance

Question 1

What are networks?

Answer 1

Group of 3+ organizations connected in ways that facilitate achievement of a common goal

Question 2

What 4 types of network research does Provan distinguish?

Answer 2

• Impact of organizations on other organizations through dyadic interactions (IV: organizational variables, DV: Individual organization)
• Impact of individual organizations in a network (IV: organizational variables, DV: collectivities of organizations)
• Impact of a network on individual organizations (IV: relational or network variables, DV: individual organization)
• Whole networks or network-level interactions (IV: relational or network variables, DV: collectivities of organizations) –> Focus of the course

Question 3

What are the 6 structure indicators of network relations by Provan?

Answer 3

• In-degree and out-degree centrality: What position in the network based on number of direct links
• Closeness centrality: Central organizations have short paths to other organizations
• Betweenness centrality: The extent to which an individual’s position in the network lies between the position of other
• Multiplexity: Number of types of links (research ties, joint programs etc.)
• Broker relationships: To what extent does an organization span gaps or structural holes
• Cliques: Clusters of three or more organizations connected to one another

Question 4

What are the 5 structure indicators of the network as a whol by Provan?

Answer 4

• Density: Overall level of connectedness among organizations in the network
• Fragmentation & structural holes: Are all or most network members connected via the business bus or is broken up in fragments?
• Governance: What mechanism/process is used to govern/manage the overall network?
• Centralization: Are one or a few organizations considerably more centrally connected than others?
• Cliques: What is the clique structure? How many? What type of organizations? How large

Question 5

What are the 6 business maxims? (Weill & Broadbent, 1998)

Answer 5

• Cost focus (economies of scale, transaction cost)
• Quality differentiation as experienced by customers (quality vs cost, satisfaction)
• Flexibility and alertness (time to market, screening of market changes)
• Growth (agressive expansion, internationally/niche oriented)
• Human resources (development/exploitation of personnel qualities, reward system, job rotation)
• Management orientation (synergies, decision-making where the action is, culture for sharing knowledge and learning)