Abstract

We develop a theoretical and quantitative model to examine the evolution of both positive and negative ties in social networks. Our findings from a longitudinal multi-method study indicate that while both dyadic and triadic relationships are significant in explaining the evolution of ties; the triadic network effects of structural balance trump the dyadic effects when network relationships are affected by new information that cannot be verified at the dyadic level. Our study offers theoretical and practical insights for firms to proactively managing their stakeholder environments.

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