View
48
Download
3
Category
Preview:
DESCRIPTION
Social Networks & Social Capital. Rays of Research Presentation Mason A. Carpenter. Networking Like Obama?. Outline. Some definitions Context Research Going forward. Outline. Some definitions Context Research Going forward. Definitions. - PowerPoint PPT Presentation
Citation preview
Mason A. Carpenter
Social Networks &
Social Capital
Rays of Research Presentation
Mason A. Carpenter
Mason A. Carpenter
Networking Like Obama?
Mason A. Carpenter
Outline• Some definitions
• Context
• Research
• Going forward
Mason A. Carpenter
Outline• Some definitions
• Context
• Research
• Going forward
Mason A. Carpenter
Definitions
• A social network is a social structure made of nodes (which are generally individuals or organizations) that that are connected together by ties.
• Social capital is the resources—such as ideas, information, money, and trust—that you are able to access through your social network.
Mason A. Carpenter
Definitions• A broker is someone who connects (bridges) different
subgroups in a network; subgroups can be functions, departments, divisions, locations, and any other dividing characteristic (age, gender, and tenure for instance)
• A connector is someone whom others consult frequently for information, resources, expertise, or decision-making help in the network.
• A super connector is someone who makes a disportionate number of connections, or provides a bridge between otherwise unconnected, large networks.
Mason A. Carpenter
Brokers
Connectors or super connectors
Direction of resource flow
Mason A. Carpenter
Ego & Whole NetworksThe org chart…
Networks…how work actually gets done
Mason A. Carpenter
Outline• Some definitions
• Context
• Research
• Going forward
Mason A. Carpenter
Managers’ Predispositions
• Networks aren’t manageable
• = Networking
• A time sink
• Risky
• External (like Facebook)
• “Informal”
Mason A. Carpenter
Rare?“If everyone had super powers, there would be no super heroes.” Syndrome from
Disney’s The Incredibles
Mason A. Carpenter
Rare?
• Nationally, more American’s are bowling than ever before, but individual play has largely supplanted team play (Putnam, 2000)
• From 1985-2004, the percentage of individuals in businesses who identified a co-worker as a close confidant in their discussion networks declined from 48% to 30% (Kacperczyk, Sanchez-Burks, & Baker, U Michigan working paper 2009)
Mason A. Carpenter
Who you know, or what you know?
•Who you know, determines what you know (and can do).
Mason A. Carpenter
Pipes vs. Ties
Mason A. Carpenter
Context - Summary
• Managerial biases
• Social networks are becoming diffuse
• Who you know What you know
• Pipes and ties
Mason A. Carpenter
Outline• Some definitions
• Context
• Research
• Going forward
Mason A. Carpenter
Research
• Psychology & Sociology
• Management & Strategy
• Finance
Mason A. Carpenter
Psychology & Sociology• Milgram’s “Small Worlds” (PT 1967)
• Granovetter’s “Getting a Job” (1974)
• In a large electronics company, managerial compensation, positive performance evaluations, promotions, and good ideas are disproportionally in the hands of people whose social networks span structural holes (Burt, AJS 2004)
• Among managers, bankers, and analysts, social capital resources are dramatically concentrated in the immediate network around a person (Burt, AMJ 2007)
Mason A. Carpenter
Management & Strategy• Nature of network ties affects how well board
directors percieve their ability to contribute to and monitor firm strategy (Carpenter & Westphal, AMJ 2001)
• CEO paid more and more strongly linked to firm performance when other social network characteristics were present (Carpenter, Sanders & Gregersen, AMJ 2001)
• Non-exec managers paid more when background plugged a strategic network need (Carpenter & Wade, AMJ 2002)
Mason A. Carpenter
Management & Strategy• Search-transfer paradox. Weak ties promote
knowledge of opportunities (information search), but strong ties are needed to access and transfer the actual knowledge and related technology (the transfer issue) (Hansen, ASQ 1999)
• Super connectors in science – a disproportionate number of inventions are spawned by a select few scientists; this phenomenon is growing stronger, and such scientists are increasingly mobile across organizations and industries (and despite non-compete clauses) (Flemming & Marx, SMR 2006)
Mason A. Carpenter
Finance
• Geographically proximate stock analysts are more accurate than other analysts (Malloy,
JoF 2005) • Mutual fund portfolio managers place
bigger bets and yield greater returns from firms they have social network ties to (Cohen, Frazzini, & Malloy, JPE 2008)
• Analysts outperform on their stock recommendations when they have social network ties to a focal firm (Cohen, Frazzini, & Malloy, HBS working paper 2008)
Mason A. Carpenter
Overarching Conclusion
• Social networks and social capital are key inputs into value creation and competitive advantage
• Weak ties most valuable to access and disseminate knowledge (information search)
• Strong ties valuable most valuable to transfer knowledge and access resources (information/resource transfer)
Mason A. Carpenter
Outline• Some definitions
• Context
• Research
• Going forward
Mason A. Carpenter
Going Forward• Reasonable to seek a balance between working and networking
• Assess your social network IQ– Does the word network make you queasy?– Take a 20-item survey (see Appendix)
• Assess your own network– Gladwell’s list of names (see Appendix)– Grid (link to survey in Appendix)– Personal, operational, strategic
• Assess your organization’s network– Requires different skill sets to excel– Bridging and brokerage skills– Different managerial mindset– Different reward structure
"Worry not that no one knows you, seek to be worth knowing.“ Confucious
Mason A. Carpenter
Further Reading • Wayne Baker (2000). Achieving Success Through Social
Capital. Jossey-Bass.
• Ron Burt (1992). Structural Holes. HBS.
• Ron Burt (2009 – in press). Neighbor Networks. Oxford.
• Mason Carpenter (2010 – in press). An Executive’s Primer on the Strategy of Social Networks. BEP.
• Daniel Goleman (2006). Social Intelligence. Bantam.
• Martin Kilduff & Wenpen Tsai (2004). Social Networks and Organizations. Sage.
Thank you!
Mason A. Carpenter
Appendix
http://research3.bus.wisc.edu/course/view.php?id=139
A grid-based Ego network survey is available under “My Bookshelf” heading”
The following page has a 20-item survey on your attitude toward networks.Simply score yourself on a scale of 1 (disagree), 3 (ambivalent), or 5 (strongly agree), and sum your scores.
Mason A. Carpenter
Appendix
Mason A. Carpenter
From Malcolm Gladwell’s Tipping Point (pp. 39-40). Go through this random list of names and give yourself 1 point for everyone you know with a given last name. For instance, if you know three Johnsons, you get three points. What is your total? Out of 400 people, Gladwell found 5% scored below 20, 3% over 90, 1% over 100, and a range of 16-108 (2-95 in a sample of college students).
Recommended