NETWORKS 1
Lecture 1: Social Networks in Organizations: An Overview
February 1 2021
Networks in organizational research (Borgatti & Foster, 2003)
Definitions:
A network is a set of actors connected by a set of ties.
The actors (often called nodes) can be persons, teams, organizations, concepts, etc.
Ties connect pairs of actors and can be directed (i.e., potentially one-directional, as in
giving advice to someone) or undirected (as in being physically proximate).
Ties can be dichotomous (present of absent, as in whether 2 people are friends or
not) or valued (measured on a scale, as in strength of friendship).
A set of ties of a given type (such as friendship ties) constitutes a binary social
relation, and each relation defines a different network (e.g., the friendship network is
distinct from the advice network, although empirically they might be correlated).
Different kinds of ties are typically assumed to function differently: for example,
centrality in the ‘who has conflict with whom; network has different implications for
the actor than centrality in the ‘who trusts whom’ network.
When we focus our attention on a single focal actor, we call that actor ego and call
the set of nodes that ego has ties with alters.
The ensemble of ego, his alters, and all ties among these (including those to ego) is
called an ego-network.
Why do we need network theory and analysis?
Network capture important social characteristics and dynamics.
Network visualization is extremely powerful.
Networks can show otherwise invisible social structure.
Realist and nominalist (Borgatti & Halgin, 2011)
Realist: true network out there which a researcher can discover.
Nominalist: every network question (e.g., ‘who are you friends with?’) generates its own
network.
Difference between frequency and duration.
Event-type ties: discrete and transitory,
often shorter than state-type.
Important theories (Borgatti & Halgin, 2011)
Strength of weak ties (Granovetter)
o The stronger the tie between 2 people, the more likely their social worlds will
overlap – that they will have ties with the same third parties.
o Bridging ties are potential source of novel ideas. A bridging tie is a tie that
links a person to someone who is not connected to his/her other friends.
1
, o Strong ties are unlikely to be the sources of novel information.
Structural holes (Burt)
o Look at how 2 social worlds can get connected.
o About the people connecting the structural holes.
Social capital = individualist
Diffusion = group
Lecture 2: Embeddedness in Organizational Networks: Knowledge
and Collaboration
What is it?
Social embedded: the degree to which commercial transactions take place through social
relations and networks of relations that use exchange protocols associated with social,
noncommercial attachments (Uzzi, 1997: 482).
People are embedded in networks. The more people are connected in the network – e.g. the
more central they are – the more embedded they are.
Why does embeddedness matter?
Research on embeddedness shows how the social structure affects (economic)
outcomes (connection social and commercial world).
Organizations are embedded in markets.
Embeddedness research also looked at entrepreneurs, organizational change,
acquisitions and other processes.
The market logic as rational choice theory must be (partially) invalid.
Economic transactions are also informed by the social (emotions etc.)
The paradox of embeddedness (Uzzi, 1997)
‘The same processes by which embeddedness creates a requisite fit with the current
environment can paradoxically reduce an organization’s ability to adapt’.
It gets better, but at some point it reduces.
Exit of a core network player (resource dependency).
Institutional forces rationalize markets (system change).
Over embeddedness (no new information).
Embeddedness can enable and constrain.
The Toyota case (Dyer & Nobeoka, 2000)
2
, Network-level knowledge-sharing processes at least partially explain the relative
productivity advantages enjoyed by Toyota and its supplier.
Suppliers learn more quickly after participating in Toyota’s knowledge-sharing
network.
Toyota solved three fundamental dilemmas with regard to knowledge sharing:
1. Motivate members to participate and openly share valuable knowledge (while
preventing undesirable spillovers to competitors).
2. Prevent free riders.
3. Reduce the costs associated with finding and accessing different types of valuable
knowledge.
Through:
Strong network identity with rules for participating and entry into the network,
Where production knowledge is viewed as the property of the network.
multilateral relationships, strong embeddedness ties in networks and with core firm, few
structural holes, both explicit and tacit knowledge, learn faster than competition.
A core/periphery perspective on individual creative performance: social networks and
cinematic achievements in the hollywood film industry (Cattani & Ferriani, 2008)
A core/periphery network structure is characterized by a cohesive subgroup of core actors
and a set of peripheral actors that are loosely connected to the core.
What is the research question?
“…we examine the role of social networks in shaping individuals’ ability to generate a
creative outcome”.
What are the main findings?
“… individuals who occupy an intermediate position between the core and the periphery of
their social system are in a favorable position to achieve creative results. … can also be
observed at the team level”
the in-between position is the best position to be in.
3
, Lecture 3: Personal networks across the life course
February 8 2021
Network society – Van Dijk
A modern type of society with an infrastructure of social and media networks that
characterizes its mode of organization at every level: individual, group /
organizational and societal…
‘… we live in a connected world and society is ever more connected it is becoming a
network society’.
‘In Western societies, the individual linked by networks is becoming the basic unit of
the network society’.
Focus is on digital communication
A society that increasingly organizes its relationships in media network that gradually
replace or complement the face-to-face communication-based networks.
Contrast this network society to the mass society that is shaped by groups,
communities and organizations that physically organized.
Networks
But networks are not a new mode of social organization’ they have been around for a long
time; we have studied them for quite some time in many social sciences.
Ego-centered networks vs. complete networks
Ego-centered network: networks (of a specific type) from the perspective of a single
actor (ego).
Complete (or full) networks: the relations (of a specific type) between all units of a
social system are analyzed.
Why study social relations?
Social relationships are important for well-being and health.
Social relationships determine access to social support and care.
Social relationships and social support can buffer stress (but can also generate it).
Social relationships know different manifestations in different contexts.
The convoy model (ego-centered model)
Life span psychology
Emphasis on emotional closeness in relationships.
Convoy model: provides a protective base and is part of a dynamic network that
moves through time, space and the life course.
Takes a life course perspective: the convoy changes as the need and opportunities to
give and receive support changes.
4
Lecture 1: Social Networks in Organizations: An Overview
February 1 2021
Networks in organizational research (Borgatti & Foster, 2003)
Definitions:
A network is a set of actors connected by a set of ties.
The actors (often called nodes) can be persons, teams, organizations, concepts, etc.
Ties connect pairs of actors and can be directed (i.e., potentially one-directional, as in
giving advice to someone) or undirected (as in being physically proximate).
Ties can be dichotomous (present of absent, as in whether 2 people are friends or
not) or valued (measured on a scale, as in strength of friendship).
A set of ties of a given type (such as friendship ties) constitutes a binary social
relation, and each relation defines a different network (e.g., the friendship network is
distinct from the advice network, although empirically they might be correlated).
Different kinds of ties are typically assumed to function differently: for example,
centrality in the ‘who has conflict with whom; network has different implications for
the actor than centrality in the ‘who trusts whom’ network.
When we focus our attention on a single focal actor, we call that actor ego and call
the set of nodes that ego has ties with alters.
The ensemble of ego, his alters, and all ties among these (including those to ego) is
called an ego-network.
Why do we need network theory and analysis?
Network capture important social characteristics and dynamics.
Network visualization is extremely powerful.
Networks can show otherwise invisible social structure.
Realist and nominalist (Borgatti & Halgin, 2011)
Realist: true network out there which a researcher can discover.
Nominalist: every network question (e.g., ‘who are you friends with?’) generates its own
network.
Difference between frequency and duration.
Event-type ties: discrete and transitory,
often shorter than state-type.
Important theories (Borgatti & Halgin, 2011)
Strength of weak ties (Granovetter)
o The stronger the tie between 2 people, the more likely their social worlds will
overlap – that they will have ties with the same third parties.
o Bridging ties are potential source of novel ideas. A bridging tie is a tie that
links a person to someone who is not connected to his/her other friends.
1
, o Strong ties are unlikely to be the sources of novel information.
Structural holes (Burt)
o Look at how 2 social worlds can get connected.
o About the people connecting the structural holes.
Social capital = individualist
Diffusion = group
Lecture 2: Embeddedness in Organizational Networks: Knowledge
and Collaboration
What is it?
Social embedded: the degree to which commercial transactions take place through social
relations and networks of relations that use exchange protocols associated with social,
noncommercial attachments (Uzzi, 1997: 482).
People are embedded in networks. The more people are connected in the network – e.g. the
more central they are – the more embedded they are.
Why does embeddedness matter?
Research on embeddedness shows how the social structure affects (economic)
outcomes (connection social and commercial world).
Organizations are embedded in markets.
Embeddedness research also looked at entrepreneurs, organizational change,
acquisitions and other processes.
The market logic as rational choice theory must be (partially) invalid.
Economic transactions are also informed by the social (emotions etc.)
The paradox of embeddedness (Uzzi, 1997)
‘The same processes by which embeddedness creates a requisite fit with the current
environment can paradoxically reduce an organization’s ability to adapt’.
It gets better, but at some point it reduces.
Exit of a core network player (resource dependency).
Institutional forces rationalize markets (system change).
Over embeddedness (no new information).
Embeddedness can enable and constrain.
The Toyota case (Dyer & Nobeoka, 2000)
2
, Network-level knowledge-sharing processes at least partially explain the relative
productivity advantages enjoyed by Toyota and its supplier.
Suppliers learn more quickly after participating in Toyota’s knowledge-sharing
network.
Toyota solved three fundamental dilemmas with regard to knowledge sharing:
1. Motivate members to participate and openly share valuable knowledge (while
preventing undesirable spillovers to competitors).
2. Prevent free riders.
3. Reduce the costs associated with finding and accessing different types of valuable
knowledge.
Through:
Strong network identity with rules for participating and entry into the network,
Where production knowledge is viewed as the property of the network.
multilateral relationships, strong embeddedness ties in networks and with core firm, few
structural holes, both explicit and tacit knowledge, learn faster than competition.
A core/periphery perspective on individual creative performance: social networks and
cinematic achievements in the hollywood film industry (Cattani & Ferriani, 2008)
A core/periphery network structure is characterized by a cohesive subgroup of core actors
and a set of peripheral actors that are loosely connected to the core.
What is the research question?
“…we examine the role of social networks in shaping individuals’ ability to generate a
creative outcome”.
What are the main findings?
“… individuals who occupy an intermediate position between the core and the periphery of
their social system are in a favorable position to achieve creative results. … can also be
observed at the team level”
the in-between position is the best position to be in.
3
, Lecture 3: Personal networks across the life course
February 8 2021
Network society – Van Dijk
A modern type of society with an infrastructure of social and media networks that
characterizes its mode of organization at every level: individual, group /
organizational and societal…
‘… we live in a connected world and society is ever more connected it is becoming a
network society’.
‘In Western societies, the individual linked by networks is becoming the basic unit of
the network society’.
Focus is on digital communication
A society that increasingly organizes its relationships in media network that gradually
replace or complement the face-to-face communication-based networks.
Contrast this network society to the mass society that is shaped by groups,
communities and organizations that physically organized.
Networks
But networks are not a new mode of social organization’ they have been around for a long
time; we have studied them for quite some time in many social sciences.
Ego-centered networks vs. complete networks
Ego-centered network: networks (of a specific type) from the perspective of a single
actor (ego).
Complete (or full) networks: the relations (of a specific type) between all units of a
social system are analyzed.
Why study social relations?
Social relationships are important for well-being and health.
Social relationships determine access to social support and care.
Social relationships and social support can buffer stress (but can also generate it).
Social relationships know different manifestations in different contexts.
The convoy model (ego-centered model)
Life span psychology
Emphasis on emotional closeness in relationships.
Convoy model: provides a protective base and is part of a dynamic network that
moves through time, space and the life course.
Takes a life course perspective: the convoy changes as the need and opportunities to
give and receive support changes.
4
