Networks & Organization Session 1: Introduction Instructor: Christopher Wheat

Why Study Networks? Networks & Organization – S01.2  Sociological significance  Sociology is essentially about the study of social structure  The relationship is one of the key uniquely sociological constructs  Ubiquity of social networks  Frequent claim that “it’s not what you know, but who you know”  Everyone’s talking about social networking (Facebook, MySpace, etc.) © MIT Sloan School of Management

Why Study Networks…Critically? Networks & Organization – S01.3  Some studies of “social networks” aren’t so clearly sociological  Is documenting the increased use of LinkedIn or country-by- country differences in MySpace usage really a network study?  Some claims about “networking” aren’t self evidently true…  How would you know if it’s not what you know?  Main objectives:  Become a critical consumer of social network research  Become a proficient producer of (well-grounded) social network research © MIT Sloan School of Management

The Main Question Networks & Organization – S01.4  In what ways are relationships, exchanges, and the structure thereof implicated in social processes and outcomes?  Part I: Developing Network Analytic Methods  Basic Structure: e.g. Dyads, Triads, Groups & Roles  Inference Methods for Identifying Structural Features  Part II: Applying Network Methods to Management and Organizational Phenomena  Group Processes, Labor Markets, Innovation, Strategy & Global Management © MIT Sloan School of Management

Basic Structure: Dyads Networks & Organization – S01.5  What can happen in a simple relationship?  Symmetric processes:  Information sharing  Mutual influence  Asymmetric processes:  Power & Influence  Method question:  How can we tease apart one from the other? © MIT Sloan School of Management

Basic Structure: Triads Networks & Organization – S01.6  What can we learn from ties among three actors that we can’t learn from ties between two?  Micro-processes of group formation  Brokerage  Differential popularity & attractiveness structures  Why do we care about this in the study of social organization? © MIT Sloan School of Management

Global Structure: Complete Networks Networks & Organization – S01.7  What can you learn from a complete network that you can’t learn from local structure?  Contextual centrality  Small world phenomena  What kinds of organizational questions does this relate to? © MIT Sloan School of Management

Networks and Role Structures Networks & Organization – S01.8  Do relationships between actors tell us anything about typologies of these actors?  Defining equivalence of relational patterns  Relationships between hypothesized roles as an object of study  Methods to elicit role structures  How do network-identified roles shape organizational outcomes?  What constitutes a “sufficient” study of organizational roles?  Do some roles perform better than others? © MIT Sloan School of Management

Network Dynamics Networks & Organization – S01.9  How do networks change over time?  What role does the agency of individual actors play in shaping network dynamics?  How can change in networks be effectively modeled?  What kind of structural claims can be made without a considering dynamics? © MIT Sloan School of Management

Cognitive Networks Networks & Organization – S01.10  Do perceptions of & beliefs about networks matter?  Do actors agree, in general, in their perceptions of network structure?  How should we think about networks if they don’t?  What are some of the consequences of actor disagreement about network structure? © MIT Sloan School of Management

Inference and Network Structure Networks & Organization – S01.11  How can we statistically assess the relevance of structural features of networks  What assumptions do we need to make in order to draw statistical conclusions?  Does this change the way we think about “non-parametric” social network analyses? © MIT Sloan School of Management

Networks and Group Process Networks & Organization – S01.12  How are individuals within groups affected by network structures?  Homophily processes  Group demography  Antecedents of creativity & productivity © MIT Sloan School of Management

Networks and Labor Markets Networks & Organization – S01.13  In what ways do networks help us understand differential labor market outcomes?  How do people find out about jobs?  How do jobs find out about people?  How do network explanations of labor market outcomes compare to other explanations? © MIT Sloan School of Management

Networks, Performance and Competition Networks & Organization – S01.14  How is firm and organizational performance affected by network position?  Network position as a source of structural advantage  Status-based competition  Alliance & interlock structures and performance © MIT Sloan School of Management

Networks, Technology and Innovation Networks & Organization – S01.15  Are networks useful in understanding the role of technology and innovation in organizational outcomes  Diffusion of technology  Technology-based competition  Collaboration processes between organizations © MIT Sloan School of Management

Networks and the Global Economy Networks & Organization – S01.16  Are network analytic constructs useful in explaining the social structure of the global economy?  Do network positions affect states in the same ways that they affect individuals and/or organizations?  Are there other explanations for global economic structures and outcomes? © MIT Sloan School of Management

Seminar Mechanics: Readings Networks & Organization – S01.17  Required reading  All available on-line (for free)  May change slightly—watch the website!  Open to suggestions for some changes  Optional reading  Articles that are related but not central  Reference readings from textbooks  Wasserman & Faust: Good general overview if not a bit dated  de Nooy, et. al.: Kind of a manual for Pajek, but helpful  Scott: Interesting overview  Doreian, et. al.: Very specific text on blockmodeling © MIT Sloan School of Management

Seminar Mechanics: Grading Networks & Organization – S01.18  Pre-class memos (25%)  Present a critique or coherent set of questions regarding the week’s readings  Must involve at least two articles  Roughly 2 pages long  Can miss memo for one week with no penalty  Post by 5:00pm on Tuesday night!  Class participation (15%)  Final paper (60%)  Should be “publication quality”  Brief proposal (2 page) due October 29 th  Final paper due Wednesday, December 10 th © MIT Sloan School of Management