Emergence of Communication Networks:A Self-organizing Systems Perspective

Noshir S. ContractorNoshir S. Contractor

Depts. of Speech Communication & PsychologyDepts. of Speech Communication & Psychology

University of Illinois at Urbana-ChampaignUniversity of Illinois at Urbana-Champaign

nosh@uiuc.edunosh@uiuc.edu

ViestintViestintää, viisaus ja vastuu, viisaus ja vastuu

Lume-mediakeskuksessaLume-mediakeskuksessa

HHäämeentie 135 C, 00560 Helsinkimeentie 135 C, 00560 Helsinki

February 4, 2000February 4, 2000

OUTLINE

Examples of self-organizing entitiesExamples of self-organizing entities The role of technologies in facilitating self-The role of technologies in facilitating self-

organizing systemsorganizing systems The new role of communication research in The new role of communication research in

studying self-organizing systemsstudying self-organizing systems

Self-Organizing Entities

FAA initiative for “free flight” FAA initiative for “free flight” Hollywood production teams Hollywood production teams Organizational consulting firms Organizational consulting firms LinuxLinux InternetInternet

Stages of Technology Use

Substitution

Substitution

Adoption based on relative advantage, Adoption based on relative advantage, observability, adaptability, compatibility, observability, adaptability, compatibility, trialabilitytrialability

Examples: Automobiles, Telephone, Examples: Automobiles, Telephone, Videoconferencing, Arpanet/Internet, Videoconferencing, Arpanet/Internet, WWWWWW

Substitution Effects

U.S. Conference Board estimates National U.S. Conference Board estimates National secretarial pool has shrunk by more than secretarial pool has shrunk by more than half a million in the past decadehalf a million in the past decade

Substitution Effects ?

The Hollywood Syndrome versus the The Hollywood Syndrome versus the Shakespeare Syndrome?Shakespeare Syndrome? Media shape the nature of arguments, which in Media shape the nature of arguments, which in

turn shape the nature of decisionsturn shape the nature of decisions Media shape the nature of coalitions, which in Media shape the nature of coalitions, which in

turn shape the nature of decisionsturn shape the nature of decisions

Substitution Effects ?

Stages of Technology Use

Enlargement

Substitution

Enlargement

To which the president of GM replied: "Yes, but would you want your car to crash every time you tried to open a window?"

If the automobile were invented in 1970 and If the automobile were invented in 1970 and dropped in price accordingly, while dropped in price accordingly, while increasing features, a car would cost less increasing features, a car would cost less than $5 and drive 25,000 miles/gallon than $5 and drive 25,000 miles/gallon (Economist, 1998)(Economist, 1998)

Enlargement

1996: Total volume of email greater than snail 1996: Total volume of email greater than snail mail; total sales of PC greater than TV setsmail; total sales of PC greater than TV sets

1999: Total volume of data traffic greater than 1999: Total volume of data traffic greater than voice; 10 fold increase in U.S. e-commerce in 10 voice; 10 fold increase in U.S. e-commerce in 10 monthsmonths

Moore’s Law: Computational power doubles Moore’s Law: Computational power doubles every 18 monthsevery 18 months

Metcalfe’s Law: The value of a network is Metcalfe’s Law: The value of a network is proportional to the number of users squaredproportional to the number of users squared

Enlargement: Information Gap

Emerging technologies improve the amount Emerging technologies improve the amount of information among the “haves” and the of information among the “haves” and the “have-nots”“have-nots”

But the “haves” are much better informed But the “haves” are much better informed than the “have-nots” resulting in an increase than the “have-nots” resulting in an increase in the Information Gapin the Information Gap

Information Gap

Stages of Technology Use

Reconfiguration

Enlargement

Substitution

WORK BY BID?

Coordination Theory

Transaction costs of coordination mechanisms

Hierarchies Hierarchies (Low)(Low) Markets (Medium)Markets (Medium) Networks (High)Networks (High)

Organizational Forms

Hierarchy

Matrix

Network

Fedex and cookies

Interdependencies in the virtual organization can occur bothinternally and externally and at various levels of the firm.

Firm A Firm B

Corporate level

Business unit level

Group level

Individual level

Surge of Network Organizations

More than 20,000 alliances formed More than 20,000 alliances formed worldwide in 1996-98, accounting for 21worldwide in 1996-98, accounting for 21% % of the revenue of America’s 1000 largest of the revenue of America’s 1000 largest firms in 1997 (Harbison & Pekar, 1999)firms in 1997 (Harbison & Pekar, 1999)

Reconfiguration Examples : Put your money where your mouse isPut your money where your mouse is

Amazon.com, Priceline.com:. Lowest price Amazon.com, Priceline.com:. Lowest price for me. for me.

Ebay.com, Guru.com: Auction. Highest Ebay.com, Guru.com: Auction. Highest price for me.price for me.

Mercata.com, Accompany.com: Lowest Mercata.com, Accompany.com: Lowest price for usprice for us

Dawn of the E-lance Economy

The fundamental unit of such an economy The fundamental unit of such an economy is not the corporation but the individual. is not the corporation but the individual. Electronically connected free lancers or e-Electronically connected free lancers or e-lancers join together into fluid and lancers join together into fluid and temporary nets to provide and sell goods temporary nets to provide and sell goods and services (Malone & Laubacher, and services (Malone & Laubacher, Harvard Business Review, 1998).Harvard Business Review, 1998).

Reconfiguring relationships:Brokering information

Info-mediaries (John Hagel & Marc Siegel)Info-mediaries (John Hagel & Marc Siegel) Importance of leveraging knowledge capital Importance of leveraging knowledge capital

via social capital - The case of the Lovegety via social capital - The case of the Lovegety

Social and Knowledge Capital

Social networks and supporting toolsSocial networks and supporting tools Cognitive social structures and supporting Cognitive social structures and supporting

toolstools Knowledge networks and supporting toolsKnowledge networks and supporting tools Cognitive knowledge networks and Cognitive knowledge networks and

supporting toolssupporting tools

Social Networks

It’s not what you know, it’s It’s not what you know, it’s whowho you know. you know.

Social Networks

Nodes represent people. Links represent who knows who.

Tools to Assist Social Networks

Tools (such as Ph, WhoIs, Four11) can help Tools (such as Ph, WhoIs, Four11) can help reduce disparities in social networksreduce disparities in social networks

Example: How can I get in touch with Example: How can I get in touch with person X?person X?

Cognitive Social Structures

It’s not who you know, it’s who they It’s not who you know, it’s who they thinkthink you know. you know.

Tools to Assist Cognitive Social Structures

Collaboration filtering tools (such as Collaboration filtering tools (such as SixDegrees) can help individuals answer SixDegrees) can help individuals answer the “Who knows who knows who” question the “Who knows who knows who” question -- to find out how one may be connected to -- to find out how one may be connected to those identified as knowledge experts.those identified as knowledge experts.

Example: I understand that X is an expert in Example: I understand that X is an expert in topic A. Whom do I know who knows X, topic A. Whom do I know who knows X, and can introduce me to X?and can introduce me to X?

Knowledge Networks

Who knows what?Who knows what? Nodes represent the individuals, project Nodes represent the individuals, project

teams, organizations, physical locations. teams, organizations, physical locations. Links representing the shared knowledge Links representing the shared knowledge

could be (i) skills, (ii) expertise, (iii) could be (i) skills, (ii) expertise, (iii) activities, (iv) interest sets, (v) activities, (iv) interest sets, (v) interpretations of project goals and/or interpretations of project goals and/or missions, (vi) work flow information. missions, (vi) work flow information.

Knowledge Networks

Nodes represent people. Links represent shared knowledge.

Tools to Assist Knowledge Networks

Data bases and traditional search engines Data bases and traditional search engines such as Alta Vista.such as Alta Vista.

Example: I need to find out something Example: I need to find out something about topic X. Where do I get this about topic X. Where do I get this information?information?

Who knows who knows what?Who knows who knows what? Example: I need to know more about topic Example: I need to know more about topic

X. Who in my extended (direct or indirect) X. Who in my extended (direct or indirect) network can tell me more about topic X?network can tell me more about topic X?

Cognitive Knowledge Networks

Summary

Social Structures are based on Social Structures are based on “who knows “who knows who.”who.”

Cognitive Social Structures are based on Cognitive Social Structures are based on “who knows who knows who.”“who knows who knows who.”

Knowledge Networks are based on Knowledge Networks are based on “Who “Who knows what.”knows what.”

Cognitive Knowledge Networks are based Cognitive Knowledge Networks are based on on “who knows who knows what.”“who knows who knows what.”

The Answer to these Questions . .

IKNOW !!!!IKNOW !!!!

http://iknow.spcomm.uiuc.edu

Goal of IKNOW

http://iknow.spcomm.uiuc.edu

Data Used in IKNOW

Based on organizational members’ Web Based on organizational members’ Web pages:pages: Links between Web pages Links between Web pages Common external links from Web pages Common external links from Web pages Content on the Web pagesContent on the Web pages

http://iknow.spcomm.uiuc.edu

Data Used in IKNOW (cont’d)

Based on organizational members Based on organizational members volunteering information about social and volunteering information about social and knowledge resourcesknowledge resources Content: inventory of skills, expertise, etc.Content: inventory of skills, expertise, etc. Links: inventory of social networksLinks: inventory of social networks Incentives for volunteering information tied to Incentives for volunteering information tied to

performance appraisal and evaluation of help performance appraisal and evaluation of help provided. provided.

http://iknow.spcomm.uiuc.edu

So why would one want to use IKNOW?

Makes the virtual visible. Makes the virtual visible. Adds social capital to knowledge capital Adds social capital to knowledge capital

by adding contacts to content.by adding contacts to content. While collaboration tools help improve While collaboration tools help improve

the process of collaboration in knowledge the process of collaboration in knowledge networks … IKNOW helps one networks … IKNOW helps one effectively identify collaboration partners effectively identify collaboration partners and grow the knowledge network.and grow the knowledge network.

http://iknow.spcomm.uiuc.edu

The New Role of Communication

Research

Self-organizing Networks:Why do actors create, maintain,

and dissolve network links? Exchange theoriesExchange theories Contagion theoriesContagion theories Cognitive theoriesCognitive theories Consistency theoriesConsistency theories Homophily theoriesHomophily theories Theories of social Theories of social

capitalcapital Proximity theoriesProximity theories

Uncertainty reduction Uncertainty reduction theoriestheories

Social support theoriesSocial support theories Collective action Collective action

theoriestheories Coordination theories Coordination theories

of organizational of organizational formsforms

Source: Monge & Contractor, in press

Examples

Collective Action: Public Goods TheoryCollective Action: Public Goods Theory Cognitive Theory: Transactive Memory TheoryCognitive Theory: Transactive Memory Theory Cognitive Consistency TheoryCognitive Consistency Theory Affect TheoryAffect Theory Social Capital TheorySocial Capital Theory

+

B CB

A

C

Cognitive Theory: Transitivity

Mechanism: Increase balance

+

Affective Theory:Group Cohesion

Mechanism: Attraction to group

_

B CB

A

C

D

Social Capital Theory:Structural holes

Mechanism: Increase autonomy, effective network size

Summary

Technologies enable reconfigurable Technologies enable reconfigurable networksnetworks

Reconfigurable networks lead to self-Reconfigurable networks lead to self-organizing systemsorganizing systems

New theory and methods needed to study New theory and methods needed to study the emergence – creation, maintenance, and the emergence – creation, maintenance, and dissolution – of these self-organizing dissolution – of these self-organizing networks networks

FOR FUTHER INFORMATION EMAIL NOSH@UIUC.EDU