Social Network Literature Research Articles

"Guanxi" Versus Social Network in China: The Perspective of Independent Directors' Connections

The social exchange theory posits that economic and social factors are crucial for successful business relationships. Numerous studies have examined interpersonal connections across cultures. Informal relationships influence economic and social exchange, such as Guanxi in China, Yongo in South Korea, and Wasta in the Middle East. In social network literature, the concept of 'network' encompasses two dimensions: network relation and network structure. The connections among directors affect a company's efficiency from a network perspective. This study conceptualises "Guanxi" and social networks to illustrate the similarities and differences between these two concepts and how Chinese Guanxi differs from Western preconceptions concerning social networks. Given that both "Guanxi" and social networks involve social connections, it is essential to note that Guanxi does not exclusively relate to social networks or merely serves as an alternative term for social networks. Additionally, this study focuses on independent directors' social networks created by serving on multiple boards and reviews the literature on independent directors' connections in China. The methodology employed to accomplish the conceptual definition and distinction was based on a comprehensive literature review that consisted of comparative studies and analyses of other scholars' perspectives and theoretical frameworks. Guanxi" is a distinctive characteristic of Chinese culture, specifically about informal relationships. Guanxi, or "personal connections," is valued by the Chinese more highly than networking, information, and institutions, which Westerners prioritise. In the "Guanxi" concept, emphasis is placed on social capital within the circle of friends, family, and close associates. This study argues that researchers must recognise subtle differences in how informal inter-organisational directors' relationships are developed and utilised in social network and "Guanxi" concepts.

Social Networks in the Work-Nonwork Borderland: Developing an Integrative Model of Cross-Domain Multiplex Relationships

Individuals’ networks are multiplex—bundles of roles, interactions, and exchanges—in which the boundaries between work relationships and non-work relationships are often blurred, or integrated. Surprisingly, though, there is a paucity of research that explicitly integrates the work-nonwork literature and the social networks literature. In this paper, we advance theory on cross-domain multiplexity—multifaceted relationships that occupy a blended work–nonwork role space by superimposing work and nonwork interactions, roles, and exchanges. Specifically, we draw from work-family border theory to propose that cross-domain multiplex relationships represent a qualitatively unique form of multiplexity that involve distinct norms, drivers, and tensions. We advance the conversation around social network analytics and work-nonwork boundary research by presenting a theoretical model of cross-domain multiplex relationships that unpacks their components, as well as their unique antecedents, outcomes, and dynamics. We also review three methodological approaches that scholars can employ to analyze our propositions. Given recent theoretical and methodological advancements in both arenas, we propose that employing social network analytic methodology can inform how scholars theorize and design research around the work-nonwork interface, expand the methodological toolkit applied to these research questions, and resolve inconsistencies in whether multiplex relationships are enriching or depleting.

The effect of social network structure on group anchoring bias

Decisions—whether made by individuals or groups—often involve estimating quantities, a process that is subject to anchoring bias (Tversky and Kahneman in Science 185: 1124–1131, 1974). Differences in susceptibility to anchoring bias between individuals and groups have been recently explored with the result that groups appear less biased than individuals (Meub and Proeger in Theor Decis 85:117–150, 2018). However, existing studies treat groups monolithically without taking into account their network structure—the pattern of relationships among members. The present paper investigates the effects of group social network structure on anchoring bias. Using a structured survey instrument, we gathered data on competence-based trust relationships among 264 students enrolled in a university degree program. An anchoring experiment was conducted in which some of the students made estimates as individuals, while others did so in groups of different structures. The findings provide initial evidence of differences in bias levels across variously structured groups as well as relative to individuals. Groups with highly centralized trust networks (where a single person owned everyone’s trust) showed more anchoring bias than dense groups (where everyone trusted everyone else) and sparse groups (where no one trusted any other member of the group) showed more bias than dense groups. In addition, despite previous research demonstrating groups are less susceptible than individuals to anchoring bias, this study shows a higher presence of bias in both our centralized groups and sparse groups when compared to individuals, suggesting that group structure might moderate the mitigating effect of groups on anchoring bias. The research has implications for organizational behavior and social network literature. Specifically, this study contributes to the debate on anchoring bias for group decisions by highlighting the significant role of social network structure. At the same time, it contributes to the literature on network structure and performance by providing initial evidence of how network structure affects anchoring bias susceptibility. Moreover, our study contributes to management practice by alerting managers to the dangers of centralized networks, suggesting that competence-based trust plays a vital role in the resistance to anchoring bias.

Environmental turbulence, network position and firm innovation: evidence from a natural experiment in China

PurposeThis study aims to explore the relationship between network position and innovation under major environmental turbulence.Design/methodology/approachThe authors use a difference-in-differences identification approach using the 2009 Industry Revitalization Plan in response to the global financial crisis as a natural experiment with a sample of Chinese listed firms from 2001 to 2017.FindingsThe findings show that a major environmental turbulence can facilitate firm innovation, and firms that occupy central positions in the interlock network show worse innovation performance while firms with high brokerage show better innovation performance.Originality/valueThe literature on environmental implication has largely focused on the threats and overlooked the potential opportunities. Moreover, social network literature has elaborated on the benefits and constraints of network positions from a static perspective but largely overlooked their implications facing environmental change. By exploring the bright side of major environmental turbulence and including this factor as a key contingency in exploring the effects of centrality and brokerage, this study integrates external environmental context with social network research and provides empirical evidence responding to the call for more attention to network dynamics and extends our understanding of the context-contingent network effects on firm innovation.

Adolescents’ Drinking Behavior Off- and Online: Disentangling Exposure Effects and Selective Exposure in Networked Communication Structures

This article applies a network approach to better understand the often-demonstrated link between adolescents’ drinking behavior and their exposure to alcohol-related content on social media. Focusing on social dynamics among adolescents and their peers, we investigate the causes and consequences of exposure to individual peers who share alcohol-related content online. Drawing on social network literature and the perspective of networked communication online, we distinguish between exposure effects and selective exposure as the two core dynamics that can explain the association between drinking behavior and exposure to alcohol-related content online. Based on a two-wave network survey among adolescents aged 14 to 17 (n = 277), we applied a longitudinal network analysis to test both dynamics simultaneously. The findings indicate no exposure effects but robust evidence for selective exposure. This means that drinking adolescents are more likely to become exposed to peers who post alcohol-related content. The stochastic actor-oriented model hereby controls for rivaling explanations, such as the tendency to be exposed to friends, classmates, and peers of the same gender. In addition to these empirical findings, we discuss the value of the network approach, outlining the implications for future research and prevention strategies.

Modelling animal network data in R using STRAND.

There have been recent calls for wider application of generative modelling approaches in applied social network analysis. At present, however, it remains difficult for typical end users-for example, field researchers-to implement generative network models, as there is a dearth of openly available software packages that make application of such models as simple as other, permutation-based approaches. Here, we outline the STRAND R package, which provides a suite of generative models for Bayesian analysis of animal social network data that can be implemented using simple, base R syntax. To facilitate ease of use, we provide a tutorial demonstrating how STRAND can be used to model proportion, count or binary network data using stochastic block models, social relation models or a combination of the two modelling frameworks. STRAND facilitates the application of generative network models to a broad range of data found in the animal social networks literature.

Adolescent Social Networks and Physical Intimate Partner Violence Among Colombian Rural Adolescents

ABSTRACT The current study analyzes individual and social network correlates of adolescent engagement in physical intimate partner violence (IPV) utilizing socio-centric data from a high-school population of 242 adolescents from rural Colombia. We studied self-reported victimization and perpetration for boys and girls. First, we used logistic regression to explore the relationship between adolescents’ IPV engagement and school peers’ IPV engagement, school violence victimization, and social network position, controlling for gender and age (N = 111). Second, we used social network statistical methods to investigate if there were more friendships of similar IPV status to the adolescent than expected by chance in their social networks. Our results show that the proportion of friends perpetrating physical IPV increased the probability of adolescents’ IPV perpetration. Contrarywise, the proportion of friends experiencing IPV victimization decreased with the adolescent’s own victimization. Being a victim (a status significantly more common among boys) was also associated with reporting perpetration for both genders. Furthermore, our results contradicted the social network literature, as we found no preferential ties among perpetrators/victims (e.g. adolescents do not seem to befriend each other by IPV engagement). Our study is unique to the global adolescent IPV literature given the scarcity of research examining physical IPV among adolescents in the context of both girls and boys in the context of their school networks. We also add to the understanding of IPV in the case of the global majority of adolescents with the highest rates of IPV victimization (living in low and middle-income countries).

Do the networks always reveal the truth? The case of tripartite business incubator in Kenya, Uganda and Zambia

PurposeThe existing literature on business incubators has rarely addressed network establishments thus far. The purpose of this study is to shed light on the process of network formation and its structure during the incubator creation process. The study focuses on establishing a network involving three key types of partners in the initial phase of setting up four agribusiness incubators. These partners come from universities, research organisations and private companies operating in a developing context.Design/methodology/approachThis study uses social network theory, using a combination of qualitative and network survey approaches in Kenya, Uganda and Zambia. The qualitative data were used to investigate partnership formation, while the network survey was conducted to map the organisational network of business incubator partners. Constructs of social network theory, including relational content, relational form, centrality of actors and instrumentality, were qualitatively measured in this study.FindingsThe findings indicate that partners rely on previous informal relationships, which are formalised during the creation of business incubator partnerships. In the African context, once these relationships are formalised, they become part of what is referred to as business networks, irrespective of the nature of the relationship content. Personal networks serve as precursors to establishing organisational networks that cater to incubated firms. Incubator partners facilitate the networking process and enhance the formation of new connections in the early-stage partnership-based tripartite business incubators. They act as brokers, bridging structural holes by coordinating actors across the hole and linking disconnected nodes by activating their sub-networks. The results reveal that the partners' level of embeddedness in various organisational settings increases the diversity of contacts integrated into the incubator networks. In terms of relational content, partners tend to perceive the ties as business-oriented, even though the content of the relationship may differ. The strength of relationships depends on their formalization and the frequency of interaction.Research limitations/implicationsThe findings of the study contradict the reviewed social network literature, emphasising the necessity to adapt methodological approaches based on the cultural and institutional context in which they are applied. The social network questionnaire requires modification when used in different contexts and settings. Specifically, methodologies should be adjusted in situations where actors need to be discreet concerning their various relationships. It is important to note that organisational culture does influence actors' behaviours.Practical implicationsThis study is deemed relevant to managers and practitioners of business incubators alike. It highlights that understanding the contextual factors that influence networking practices, the type and strength of networks and the resources provided to participants are crucial elements that should be considered in future policy and intervention initiatives.Originality/valueThis paper addresses the identified gap in examining network formation during the establishment of business incubators. The research is significant as it provides insights into networking at the incubator level of analysis within a tripartite business incubator setup. Ultimately, this paper helps increase our understanding of networking within the context of emerging countries.

A Model of Dynamic Flows: Explaining Turkey’s Interprovincial Migration

The flow of resources across nodes over time (e.g., migration, financial transfers, peer-to-peer interactions) is a common phenomenon in sociology. Standard statistical methods are inadequate to model such interdependent flows. We propose a hierarchical Dirichlet-multinomial regression model and a Bayesian estimation method. We apply the model to analyze 25,632,876 migration instances that took place between Turkey’s 81 provinces from 2009 to 2018. We then discuss the methodological and substantive implications of our results. Methodologically, we demonstrate the predictive advantage of our model compared to its most common alternative in migration research, the gravity model. We also discuss our model in the context of other approaches, mostly developed in the social networks literature. Substantively, we find that population, economic prosperity, the spatial and political distance between the origin and destination, the strength of the AKP (Justice and Development Party) in a province, and the network characteristics of the provinces are important predictors of migration, whereas the proportion of ethnic minority Kurds in a province has no positive association with in- and out-migration.

Performance Gap and Innovation Ambidexterity: A Moderated Mediation Model

Innovation ambidexterity has become a crucial strategic action for creating sustainable competitive advantages. This research provides novel insights by establishing a connection between performance gaps and innovation ambidexterity. We employ the organization’s resource acquisition and management perspective to construct and empirically assess a moderated mediation model that sheds light on the underlying process—through the dual-mediating path of network broadening (NB) and network deepening (ND) and the moderating role of resource orchestration capabilities. Using subjective surveys and objective-matched data from 362 Chinese listed firms, we confirm the positive-performance-gap-combined innovation ambidexterity relationship, and we find that NB and ND play a parallel mediating role between performance gap and balanced and combined innovation ambidexterity, with ND playing a stronger mediating role than NB. Furthermore, resource orchestration capabilities play a moderating role between NB and balanced and combined innovation ambidexterity, as well as between ND and balanced and combined innovation ambidexterity. These results contribute to the research on social network and ambidexterity literature and provide guidance on how to overcome firms’ performance dilemmas. However, our study has certain methodological limitations that constrain the implications of our results, offering intriguing opportunities for future research.

Collaborative HRM, climate for cooperation, and employee intra-organizational social ties in high-technology firms in China: A cross-level analysis.

Individual social ties have been an important source of competitive advantages for hightech firms in the knowledge economy. However, the existing cross-level studies have mainly investigated the impact of HRM systems on traditional individual attitudinal or behavioral outcomes, and few studies have examined the effect of SHRM on individual social ties. Based on the data collected from 363 knowledge employees working in 64 high-tech firms in China, we examine the cross-level relationships among collaborative HRM practices, climate for cooperation and employee intra-organizational social ties. The hierarchical linear model results show that organizational-level collaborative HRM practices have significant positive effects on the number and strength of individual-level intra-organizational social ties, and the climate for cooperation mediates the positive cross-level relationship between collaborative HRM and individual intra-organizational social ties. This study makes three contributions to the literature. First, with a cross-level model, this study helps us better understand how collaborative HRM acts as an approach to manage individuals' social capital formation. Second, this study makes contribution to the social network literature by showing how organizational contextual factors (HRM practices and organizational climate) affect employee individual social ties. Third, based on the AMO model, this paper developed a more clear construct and a three-dimension measurement of the collaborative HRM.

The Determinants of Insider Trading in the Credit Default Swap Market-A Network Perspective

Compared to the corporate bond and stock markets, investors prefer the CDS market to implement insider trading since the CDS market is less regulated and trading in this market on their private information is relatively easy without generating great transaction costs. Social networks, board networks in particular, are one of the central features of most economic activities and play an important role in information transmission. Therefore, investors are motivated to make use of the informational advantage gained from well-connected directors in the CDS market. In this paper, we investigate whether and how insider trading in the credit default swap (CDS) market is influenced by the corporate board network, formed by interlocking boards. We use CDS innovation as a proxy for the intensity of insider trading in the CDS market. To estimate the centrality of a firm position in the board network, we use the average quintile ranks of the four commonly used normalized board network centrality measures. We test our hypothesis based on a large sample of U.S. firms from 2004-2014 and find strong evidence that firms with a more centralized position in the board network experience a higher degree of insider trading in the CDS market. Our results suggest that the board network facilitates private information leakage to investors, resulting in more active informed trading in the CDS market. Moreover, such an association is more pronounced for firms with negative earnings news and for firms with weak corporate governance. In addition, using the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) as a quasi-natural experiment, we document that insider trading becomes less active after the passage of the Dodd-Frank Act. Our results still hold when we repeat the baseline analysis using four centrality measures separately or when controlling for the number of banking relationships. Our results add both to the insider trading literature and the social networks literature by examining the relationship between board network centrality and insider trading behavior in the CDS market. The findings indicate that board networks could serve as a relationship network that transmits private information to outside investors.

How Does Guanxi Shape Entrepreneurial Behaviour? The Case of Family Businesses in China

AbstractThis paper explores how Guanxi shapes different levels of entrepreneurial behaviour of family businesses in China. Extant research draws on network theory, suggesting that firms focusing on less intimate social relationships are more entrepreneurial than those focusing on intimate social networks. However, this notion of networks neglects Guanxi’s indigenous cultural roots that promote intimacy in social relationships, thus limiting our understanding of why some firms in China demonstrate a higher level of entrepreneurial behaviour than others. Through an in‐depth multi‐case study analysis of eight family firms in China, we find that Guanxi is a multi‐dimensional concept that can only be effective through intimate relationship building. This study contributes to the social network literature on entrepreneurial behaviour by incorporating the gift exchange theoretical perspective and demonstrating that political Guanxi in China can only facilitate entrepreneurial behaviour when it is built around a significant level of intimacy. We also contribute to family business research by demonstrating that family ties are multi‐dimensional. Different cultural values may inform different dimensions of family ties via differences in family business governance structures, which can give rise to different levels of entrepreneurial outcomes. This study offers theoretical and practical implications alongside avenues for future research.

Learning from Patient 31 case: a cross-cultural perspective of corporate networks’ diffusion ability in Latin America

Objective: This paper has the purpose to discuss how corporate networks’ big linkers constitute a development opportunity area in Latin America. Method: We employ a qualitative analysis that blends social networks literature and builds on interlocking directorates (IntDs) theory with a fascinating case study labeled the ‘Patient 31’ phenomenon that occurred during the coronavirus outbreak in South Korea. Main results: We generate managerial and conceptual insights on the diffusion processes of business practices, which have a series of profound implications for theory and practice on how corporate networks present differences in their diffusion ability. Relevance/Originality: Viral contagion processes are not a secret for health sciences, but they are still underresearched in the context of managerial practices regarding diffusion processes. The COVID-19 virus has been (and is) a significant threat for global health since the beginning of 2020, as well as an operational challenge for almost every organization around the world. Theoretical/Methodological contributions: The results highlight the superspreaders’ high diffusion power, warn about the risks of including ‘Patient 31’- type of spreaders as members of the firms’ boards, and also provide recommendations on how policy makers could harness this diffusion ability over the organizational networks.

A network approach to work-family conflict

Most human behaviours, including those instrumental for reducing Work–Family Conflict (WFC), take place in the context of social relationships. However, the role of social networks in an individual's WFC goal pursuit process has not received sufficient attention, as most current research is dominated by an agentic perspective that argues that individuals possess the capabilities to change the demands and resources associated with their roles freely. We believe that the reality faced by many workers is more composite, as the various work and family stakeholders present in an individual's network can create significant constraints and opportunities that are capable of inhibiting or enhancing their agency. In this paper, we aim to examine how the ecosystem of network relationships in an individual’ social network can influence his or her overall capability to minimise WFC. Building on insights from dynamic network theory, a recently introduced framework in the social network literature, we propose a conceptual model that explains the specific roles that work and family stakeholders (i.e., supporters, preventers, resistors, reactors, negators, interactants, or observers) can assume with respect to goal strivers' attempts to manage WFC. Building on prior work-family and social network research, we illustrate how two characteristics of the network in which an individual is embedded (i.e., centrality and density) can shape the magnitude of social network influence on WFC. Implications for theory and practice are also discussed.

The impact of a multimodal professional network on developing social capital and research capacity of faculty at historically black colleges and universities

This qualitative case study examined how a multimodal professional network environment (STEM for all Video Showcase) affected five STEM educational researchers’ capacity to engage in grant funded research at U.S. Historically Black Colleges and Universities (HBCUs). Guided by the social capital and professional network literature as a conceptual framework, we analyzed data from surveys, interviews, and online discussion posts. We aimed to understand HBCU-based researchers’ supports and barriers in writing and/or conducting grant funded research in STEM education, and ways in which the multimodal professional network experience supported their research and professional networking, if at all. We found that organizational structures shaped participants’ social capital as well as their grant funded research activities. Further, participating in a multimodal professional network enabled participants to further develop their research capacity and to also expand their collegial networks. We offer recommendations for institutions to support the research endeavors of their faculty and suggest ways in which organizations using or developing professional multimodal networks can enhance faculty research development.

Social capital and capital allocation efficiency

AbstractBased on the social norms and structural theories of social capital, this study examines the relationship between community social capital and the firms’ capital allocation efficiency. We hypothesize and find that the community social capital of a firm's headquarter area has a negative and statistically significant impact on its capital allocation inefficiency, which is robust to alternative proxies for community social capital and capital allocation inefficiency, propensity score matching and instrumental variable regressions. In addition, we find that the effect of community social capital is more pronounced for firms with poor internal ethical culture and weak network connections to outside executives and directors, implying that community social capital becomes important in these situations. This finding links prior social norms and networks literature to capital allocation studies in that the norms and networks components of community social capital discipline self‐interested managers’ behavior and reduce information asymmetry‐two channels of capital allocation efficiency. Overall, community social capital works as a compensatory monitoring and information transfer mechanism and improves the firms’ capital allocation efficiency.

Female leaders' social network structures and managerial performance: The moderating effects of promotional orientation and climate for inclusion.

Leaders' managerial performance is influenced not only by their attributes and leadership styles but also by their social network structures. This study examines the effect of female leaders' in-degree centrality on their managerial performance and how the relationship is moderated by leaders' regulatory focus and workplace climate for inclusion. Hereby, we used survey data of 340 female leaders working in multinational organizations and managerial performance ratings by their supervisors. Results showed that the leaders' in-degree centrality positively related to their managerial performance and that a high climate for inclusion increases this relationship, whereas female leaders' promotional orientation did not. However, when the climate for inclusion was high, female leaders' promotional orientation positively related to managerial performance. This study reveals that female leaders' feeling of inclusion at a workplace complements their promotional orientation and augments the effect of network structures on managerial performance. Our findings provide new prospects for future studies to examine a leader's managerial performance by incorporating social, relational, and structural contexts. This study contributes to women's leadership and social network literature by explaining the boundary conditions that enhance female leaders' managerial performance.

Social Influence, Competition, and Free Riding: Examining Seller Interactions Within an Online Social Network

Online social networks are increasingly being used to conduct commercial activities, and many online social networking platforms allow users to sell products to their online connections. Although extensive research has been conducted on the interactions among buyers within a social network, interactions among sellers have rarely been explored. Using seller data from a company that sells on a major online social networking platform in China, we empirically examine how sellers’ efforts and sales performance are affected by the efforts and sales performance of other sellers they are connected to (i.e., their inviters and invitees) and the commissions they themselves have received. We find evidence for social influence and competition effects in the “inviter-to-invitee” direction and sellers’ free-riding behavior driven by the commissions they receive from their invitees’ sales. These results extend the social network literature that has largely focused on connected buyers (or users) to connected sellers and offer implications for social networking platforms to promote seller participation.

Social capital exchanges in voluntary associations and work organizations: A network perspective

AbstractOrganizations have been an important setting in which social capital exchanges (SCEs) occur, but little work has been done to distinguish two predominant species of organizations in the social network literature: voluntary associations and formal work organizations. Addressing this lacuna, this article comparatively examines how the two organizational species differ in (1) how two prominent types of SCEs operate (restricted and generalized exchange), as well as (2) the analytical approaches and methodological tools for studying SCEs (boundary‐specification, sampling, network designs, tie‐recording methods) and their adherent implications for network structure (networking conditions and homophily). This article concludes by identifying methodological and theoretical challenges for studying SCEs in organizations (conceptualizing organizations as units, underappreciating meaning‐making and methodological triangulation, and examining contagion in organizational networks in an age of digitalization) and developing recommendations for overcoming them.