Employee Centrality in Workgroup Social Networks and I-deals: A Test of the Ledger Model

Abstract

Individually negotiated customized work arrangements or idiosyncratic deals (i-deals) are an increasingly common phenomenon in contemporary organizations. We propose that these deals are created and implemented in the social context of the workgroup, such that one’s location in the social network of relationships within the group plays a key role in encouraging or deterring any i-deals. Drawing on social network theory, we propose that being central in trust network is positively associated with i-deals whereas being central in hindrance network is negatively associated with i-deals. Further, both relationships are stronger for high TMX employees. Additionally, we propose that centrality in hinderance network is more strongly related to focal’s i-deals than centrality in trust network. Finally, we suggest that the relative importance of centrality in hindrance network over centrality in trust network is of greater magnitude for high TMX than for low TMX employees. Results of hierarchical linear modeling and relative importance analyses on data gathered from 488 focal employees, 490 peers, and 32 principals supported our hypotheses. Implication and future directions for social network and i-deals research are discussed.