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Journal ArticleDOI

The contingent value of social capital.

01 Jun 1997-Administrative Science Quarterly (The Johnson Graduate School, Cornell University)-Vol. 42, Iss: 2, pp 339
TL;DR: In this paper, the authors present an argument and evidence for a structural ecology of social capital that describes how the value of an individual's social capital to an individual is contingent on the number of people doing the same work.
Abstract: I present argument and evidence for a structural ecology of social capital that describes how the value of social capital to an individual is contingent on the number of people doing the same work. The information and control benefits of bridging the structural holes—or, disconnections between nonredundant contacts in a network—that constitute social capital are especially valuable to managers with few peers. Such managers do not have the guiding frame of reference for behavior provided by numerous competitors, and the work they do does not have the legitimacy provided by numerous people doing the same kind of work. I use network and performance data on a probability sample of senior managers to show how the value of social capital, high on average for the managers, varies as a power function of the number of people doing the same work.
Citations
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Journal ArticleDOI
TL;DR: A growing number of sociologists, political scientists, economists, and organizational theorists have invoked the concept of social capital in the search for answers to a broadening range of questions being confronted in their own fields as mentioned in this paper.
Abstract: A growing number of sociologists, political scientists, economists, and organizational theorists have invoked the concept of social capital in the search for answers to a broadening range of questions being confronted in their own fields. Seeking to clarify the concept and help assess its utility for organizational theory, we synthesize the theoretical research undertaken in these various disciplines and develop a common conceptual framework that identifies the sources, benefits, risks, and contingencies of social capital.

8,518 citations


Additional excerpts

  • ...* Social capital influences career success (Burt, 1992; Gabbay & Zuckerman, 1998; Podolny & Baron, 1997) and executive compensation (Belliveau, O'Reilly, & Wade, 1996; Burt, 1997a)....

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Journal ArticleDOI
TL;DR: In this paper, a theoretical framework that relates three aspects of a firm's ego network (direct ties, indirect ties, and indirect ties) is proposed to assess the effects of a firms network of relations on innovation.
Abstract: To assess the effects of a firm's network of relations on innovation, this paper elaborates a theoretical framework that relates three aspects of a firm's ego network—direct ties, indirect ties, an...

4,829 citations


Cites background from "The contingent value of social capi..."

  • ...Although the facilitative role of networks has led to their identification as network resources or social capital (Burt, 1997; Gulati, 1999), and network attributes have been associated with several distinct benefits, such as trust, information, and power, scholars have been unable to agree on the…...

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  • ...Thus, in addition to being limited in magnitude, the value of indirect ties is also likely to be contingent on the number of a firm's direct ties (see also Burt, 1997)....

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Journal ArticleDOI
TL;DR: In this article, the authors introduce a social network perspective to the study of strategic alliances and identify five key issues for the formation of alliances, the choice of governance structure, the dynamic evolution of alliances and the performance of alliances.
Abstract: This paper introduces a social network perspective to the study of strategic alliances. It extends prior research, which has primarily considered alliances as dyadic exchanges and paid less attention to the fact that key precursors, processes, and outcomes associated with alliances can be defined and shaped in important ways by the social networks within which most firms are embedded. It identifies five key issues for the study of alliances: (1) the formation of alliances, (2) the choice of governance structure, (3) the dynamic evolution of alliances, (4) the performance of alliances, and (5) the performance consequences for firms entering alliances. For each of these issues, this paper outlines some of the current research and debates at the firm and dyad level and then discusses some of the new and important insights that result from introducing a network perspective. It highlights current network research on alliances and suggests an agenda for future research. © 1998 John Wiley & Sons, Ltd.

4,694 citations

Journal ArticleDOI
TL;DR: In this article, the authors outline the mechanism by which brokerage provides social capital, and show that between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely have ideas evaluated as valuable.
Abstract: This article outlines the mechanism by which brokerage provides social capital. Opinion and behavior are more homogeneous within than between groups, so people connected across groups are more familiar with alternative ways of thinking and behaving. Brokerage across the structural holes between groups provides a vision of options otherwise unseen, which is the mechanism by which brokerage becomes social capital. I review evidence consistent with the hypothesis, then look at the networks around managers in a large American electronics company. The organization is rife with structural holes, and brokerage has its expected correlates. Compensation, positive performance evaluations, promotions, and good ideas are disproportionately in the hands of people whose networks span structural holes. The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable. I close with implications for creativity and structural change.

4,442 citations


Cites background from "The contingent value of social capi..."

  • ...…of his or her own job and as success depends more on reading the organization to identify valuable projects and know who can be brought together to implement the projects (cf. Burt 1997).11 Salary in model 1 decreases for first-rank managers by $7 with a one-point increase in network constraint....

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Journal ArticleDOI
TL;DR: In this article, the authors trace the evolution of social capital research as it pertains to economic development and identify four distinct approaches the research has taken : communitarian, networks, institutional, and synergy.
Abstract: In the 1990s the concept of social capital defined here as the norms and networks that enable people to act collectively enjoyed a remarkable rise to prominence across all the social science disciplines. The authors trace the evolution of social capital research as it pertains to economic development and identify four distinct approaches the research has taken : communitarian, networks, institutional, and synergy. The evidence suggests that of the four, the synergy view, with its emphasis on incorporating different levels and dimensions of social capital and its recognition of the positive and negative outcomes that social capital can generate, has the greatest empirical support and lends itself best to comprehensive and coherent policy prescriptions. The authors argue that a significant virtue of the idea of and discourse on social capital is that it helps to bridge orthodox divides among scholars, practitioners, and policymakers.

4,094 citations


Cites background from "The contingent value of social capi..."

  • ...The networks view of social capital is closely associated with Burt (1992, 1997, 1998); Fafchamps and Minten (1999); Massey (1998); Massey and Espinosa (1997); Portes (1995, 1997, 1998); and Portes and Sensenbrenner (1993)....

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References
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Journal ArticleDOI
TL;DR: In this paper, it is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another, and the impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored.
Abstract: Analysis of social networks is suggested as a tool for linking micro and macro levels of sociological theory. The procedure is illustrated by elaboration of the macro implications of one aspect of small-scale interaction: the strength of dyadic ties. It is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another. The impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored. Stress is laid on the cohesive power of weak ties. Most network models deal, implicitly, with strong ties, thus confining their applicability to small, well-defined groups. Emphasis on weak ties lends itself to discussion of relations between groups and to analysis of segments of social structure not easily defined in terms of primary groups.

37,560 citations

Journal ArticleDOI
TL;DR: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...
Abstract: In this paper, the concept of social capital is introduced and illustrated, its forms are described, the social structural conditions under which it arises are examined, and it is used in an analys...

31,693 citations

Book
01 Jan 1990
TL;DR: In this article, a new approach to describing both stability and change in social systems by linking the behavior of individuals to organizational behavior is proposed. But the approach is not suitable for large-scale systems.
Abstract: Suggests a new approach to describing both stability and change in social systems by linking the behavior of individuals to organizational behavior.

16,017 citations

Book
01 Jan 1993

14,679 citations

BookDOI
TL;DR: Putnam et al. as discussed by the authors analyzed the efficacy of these governments in such fields as agriculture, housing, and health services, revealing patterns of associationism, trust, and cooperation that facilitate good governance and economic prosperity.
Abstract: Why do some democratic governments succeed and others fail? In a book that has received attention from policymakers and civic activists in America and around the world, Robert Putnam and his collaborators offer empirical evidence for the importance of "civic community" in developing successful institutions Their focus is on a unique experiment begun in 1970 when Italy created new governments for each of its regions After spending two decades analyzing the efficacy of these governments in such fields as agriculture, housing, and health services, they reveal patterns of associationism, trust, and cooperation that facilitate good governance and economic prosperity

13,915 citations