Abstract
In this study, we extends the debate surrounding contrasting views on network closure and structural hole, one of the main issues of social network theory, to supply chain network. In particular, we empirically unveil the relationship between operational performances of individual firms and two views based on structural positions(closure and hole) of the firms through the lens of supply chain network. To do so, based on physical flow data of a representative steel company of Korea, network density and constraints indices derived from social network analysis are used as proxy for network closure and structural hole respectively. Moreover, super efficiency as measured by data envelopment analysis with multiple inputs and outputs is adopted to represent each firm’s overall operational performance. Finally, main and interaction effects are tested by using generalized linear model, considering basic data characteristics and distributions. The results show that network closure has a negative effect and structural hole has a positive effect on operational performance. And also there is an interaction effect between two structural position indices.
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