Abstract

Friendship networks represent an integral part of organizational activity. Yet research into social networks in organizations has not clearly explained how friendship ties develop. This longitudinal study examines the effects of organizationally relevant attribute similarity as well as reciprocal effects of dyadic ties and structural position in a friendship network. We propose a dynamic model in which attribute similarity facilitates both dyadic friendship ties and similarity of social position. In addition, we propose that existing friendship increases the likelihood of future structural similarity, and existing structural similarity increases the likelihood of future friendship. We tested our propositions by measuring the friendship network among executive MBA students at two different times, and examining individual and structural effects on development of dyadic ties and social positions in the network. Our analysis reveals mixed support for the proposed influence of personal attribute similarity but strong support for reciprocal effects of friendship and structural similarity over time. The findings contribute to organizational literature by suggesting a more complex relationship between homophily and friendship than is typically found, and by supporting the significance of balance and transitivity in social networks. We discuss the implications of our findings for understanding social change within a pluralistic world.

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