Structural Holes: Social Structure of Competition

Structural Holes: The Social Structure of Competition
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Preview — Structural Holes by Ronald Burt. Thus, node A is likely to receive some nonredundant information from its contacts. Application for this theory can be found in one of Burt's studies of entrepreneurial network. Return to Book Page. Join Our Mailing List:

One minus this expression expresses the nonredundant portion of relationship. The more each node is disconnected from other primary contacts, the higher the effective size would be. This indicator varies from 1 network only provides a single link to the total number of links N each contact is nonredundant.

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Borgatti developed a simplified formula to calculate effective size for unweighted networks. Where t is the number of the total ties in the egocentric network excluding those ties to the ego and n is the number of total nodes in the egocentric network excluding the ego. This formula can be modified to calculate the effective size of the ego's network.

This indicator measures the extent to which time and energy is concentrated within a single cluster. It consists of two components: It depends on three network characteristics: Constraint on an individual would be generally higher in case of a small network he or she has just few contacts , and if contacts are highly connected between each other either directly as in a dense network, or indirectly, through the mutual central contact as in a hierarchical network.

Structural Holes

The idea behind structural holes theory is somewhat close to the strength of weak ties theory , famously developed by Mark Granovetter. According to weak ties argument, the stronger the tie between two people is, the more likely their contacts will overlap so that they will have common ties with the same third parties. Therefore, Granovetter argues that strong ties are unlikely to transfer any novel information. Both concepts rely on the same underlying model, however, some differences between them can be distinguished.

The networks rich in structural holes were referred to as entrepreneurial networks, and the individual who benefits from structural holes is considered as an entrepreneur. Application for this theory can be found in one of Burt's studies of entrepreneurial network.

The Social Structure of Competition

He studied a network of managers in the supply chain for the firm, and measured the degree of social brokerage. All the managers had to submit their ideas about the ways to improve supply chain management, which were then evaluated by judges.

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From Wikipedia, the free encyclopedia. American Journal of Sociology The Social Structure of Competition. Unpacking Burt's Redundancy Measures".

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