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The Structural Theory Of Social Networks

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2.2 Networks
Networks
Networks are broadly defined as a “composite of a large number of actors and the pattern of relationships that tie them together, or a specific structure connecting relationships among a group of people, individuals or events” (Xu et al., 2008, p.789). Social networks, a specific type of network, can be defined as a web of personal connections and social relationships among individuals that arrange strong means and ways to access and share relevant valuable information, knowledge, resources and capabilities that are essential for the growth and the competitive advantage of a firm (Huang et al., 2012; Schoonjans et al., 2013; Xu et al., 2008; Manolova et al., 2010).

Social networks
In the context of organizational settings, …show more content…

More specifically, the concept of structural holes (i.e., individuals that are not connected to the social network) emphasizes on the brokering opportunities by taking a beneficial position in the network structure that is full of disconnected contacts, and on the informational benefits and tacit knowledge and learning that could occur with access to information and referrals to other connections in the network. In other words, more structural holes within the network lead to more value that can be obtained from the network activities of the firm. Therefore, individuals that are connected to the same network likely to have redundant ties and information. Whereas, individuals linked in a separate network are more likely to have access to non-redundant ties and information thereby spreading new information with new ideas and opportunities. A high number of non-redundant ties can lead to access to valuable diverse knowledge and resources. Furthermore, identifying opportunities and risks can be more rapidly done and the flexibility can be strengthened. However, structural holes happen to occur more among network individuals that have a weak tie with the focal firm, since it is unlikely that network individuals with strong ties are not connected among themselves (Zhou et al., 2007; Schoonjans et al.,

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