Networks Flashcards
Dual assumptions of Social Network Theory that differentiate it from other org theories
Relationships & Structure Matter
o Relationships matter because they provide actors with access to social exchanges
o Structure matters because the arrangement of relationships constrains and creates opportunities not only for the actors but for the entire network
Major Approach: Relatedness & Typology
More individual focused:
Typically looks at both the individual ties between actors and the shape of the network as a whole
Centrality:
- # of direct or intermediate ties (Degree centrality),
- closeness centrality (how many actors can one actor reach),
- betweenness centrality (extent to which the actor is an intermediary between others in the network)
Topology (Burt, 1997) Structural Holes:
• Good for actor who spans the holes, they control information, have more power
Major Approach: Embeddedness
More interorganizationally focused
By becoming embedded, orgs reduce uncertainty, develop trust, and share information better (which lowers transaction costs)
The embedded/tight knit community creates norms to adhere, produces network governance without the need for formal contracts and costly monitoring
Major Approach: Egonet
Actors bring with them specific characteristics that influence their ties)
Homophily- selection of new ties based on similarity
Key Contributions of Network Theory
o informal networks are important
o perceptions are critical (i.e., perceiving someone as being friends with a powerful person)
o Structure and agency (i.e., individual differences like gender, self- monitoring predict how people shape their social networks to their advantage)
Ibarra et al. (2005)
Highlights individual & collective dilemmas (i.e., Tragedy of commons where individuals erode the collective capital by serving their own interests)
Networks affect social identity
Identity affects networks (i.e., homophily)
Orgs as networks of cognitions (i.e., perceptions of position/influence)
Networks Affect Cognitions (i.e., interacting with friends only network reinforces beliefs, limits access to new info)
Cognitions affect structure (perceptions can influence behavior)
Kilduff & Brass (2010)
Offered ideas for future research and highlighted key debates
Future research:
- focus on actor characteristics
- start incorporating agency (i.e., people changing their structure)
- look at cognitions more
- specify boundaries
Provan et al. (2007)
Inter-Organizational Networks
General network structure & the positioning of each org within the network influence the info that is conveyed.
A key group of organization within the network & their leaders often play a central role (carriers rules and practices).
Resource availability influences the ability to gain legitimacy and facilitate network development
Networks may lead to org learning
Ring & Van de Ven (1994)
Prior research ignored process by which relationships emerged
Futures are uncertain, and knowing you can trust the other party mitigates risk
People are likely motivated to adhere to norms of fairness in their networks b/c they’d like to engage in future transactions during uncertain times (related to stewardship/pro-organizational motives)
When trust is prevalent, relationships will use less formal governance (i.e., legal contracts) and more informal governance (i.e. psych contracts)
Role relationships can inhibit trust, so safeguards may be needed
Sensemaking congruence promotes these relationships