Session 4: Network theory

Traditions of network research

1) Network modeling

- Mathematical sociology 

- Physicist

Centola & Macy (2007)

2) Networked organization (Network forms & Organization)

- Hybrid organization

- Powell, W. (2003). Neither market nor hierarchy. The sociology of organizations: classic, contemporary, and critical readings, 315, 104-117.

- Cultural sociology (Institutional organizing)

- Intensive case studies

3) Hypothesis testing 

3-1) Network structure (content) -> Firm performance (the type of tie in personal level affecting individual performance)

70%

3-2) + Mechanism: link is missed

-> Network structure -> Behavior (-> Performance)

15%

3-3) Antecedents

The cause of the network?

15%

Keywords

Network

Embeddedness

Status

Structural hole

Centrality

Level of analysis

# What is the comparable sample to examine the network effect?

# Sampling + Scope boundary + Methodology

Uzzi (1996)

Science closed to the complexity science

Quant + Qual (ASQ 1997)

The first student of Granovetter

The first paper to measure the embeddedness * Contribution

1) DV: Survival?

1-1) There is no sales data

1-2) In addition, is the measure of survival correct?

1-2-1) Selection bias: the observation period is too short: 1.7 (Death takes a long time)

$ The stress on the ambidextrous structure in strategy (Harvard research on dead corporates (2016~7) -> No relationship!)

1-2-2)  Financial DV disguise the true performance

2) Conflicting Hypotheses

Different outcome of 1st order coupling and 2nd order coupling

Scope condition?

Ex-post justification if available, but Ex-ante theorizing is difficult

3) What is the proper tie mix? (Embeddedness <-> Arm's length)

* The opposite result with Shipilv 2008

4) The limitation of trust and reciprocity in the embeddedness

Is the measurement available?

* Gulati: embeddedness as joint dependence (as a sum)

* Why Gulati's embeddedness and Uzzi's embeddedness is different? 

* Because Uzzi referred Uzzi.. Let's suggest that Uzzi's idea is wrongly applied in Gulati

5) The strength of the weak tie?

Structural hole / Embeddedness

DV: innovation + / -

6) Direction of tie

Powell, Koput, & Smith-Doerr (1996)

The sources of the network?

1) Learning mechanism

Not properly analyzed

Longitudinal data & Methodology would be supplemented

* DV: growth is measured as 1 which means after the publicized there comes no 

2) Internal capacity

3) Embeddedness -> Innovation

+ (Information) / - (Clique)

- is more popular

* Exploitive / Exploratory innovation (BTOF), Innovation could be classified

* In status literature: Relational embeddedness / Structural embeddedness

4) Alternative explanation

R&D hedging

Podolny (2001)

Student of Harrison White

Ron Burt & Podolny make White's theory in human words

1) The relationship between the structural hole & status

Do the structural hole and status conflict?

Static correlation (+)

Dynamic correlation

S.H. -> Status (+)

Status -> S.H. (-)

The opposite of the Mathew effect (The actor with high status loses the structural hole)

2) Uncertainty

Altercentric uncertainty 

Egocentric uncertainty

E.U. -> S.H.

A.U -> S.

* But only the former is tested

* Then what about the latter? 

* Altercentric uncertainty is not measured. 

* E.X. Internet information -> Altercentric uncertainty reduced -> Status become useless

* The uncovered assumption = A.U. has opposite direction with E.U.

Thesedays

(1,1) Doctor / (1,2) Religion

(2,1) Market_due to the information diffuse / (2,2) Art

* Assumption in the status

= Alter has interest in Status. 

* But does ego have no interest in Status?

* Must be dyadic

Centola & Macy (2007)

1) Isomorphism in the macro organizational sense?

* How to read simulation paper, add some opinions

Sytch & Tataynowicx (2014)

1) Centrality

- Degree centrality: How much tie

- Betweenness centrality: How much channeling through ego (Coreness) * But the author didn't use this measure

- Closeness centrality: To whom?

- Bonachichi centrality (eigenvector centrality): Status (Podolny), power

* Similar to March's exploration / exploitation paper 

Shipilv 2008

1) Scope -> Theorize

High alter-centric uncertainty -> Signal becomes important

More important is the identity

<-> Uzzi: Cooperation is more important than signal

2) 2nd order / 1st order

3) The negative effect of Status

-> S.H. (-)

-> Success Trap