Social Cohesion, Structural Holes, and a Tale of Two Measures

EMBARGOED - author can archive pre-print or post-print on any open access repository after 12 months from publication. Publication date is May 2013 so embargoed until May 2014.This is an author’s accepted manuscript (deposited at arXiv arXiv:1211.0719v2 [physics.soc-ph] ), which was subsequently published in Journal of Statistical Physics May 2013, Volume 151, Issue 3-4, pp 745-764. The final publication is available at link.springer.com http://link.springer.com/article/10.1007/s10955-013-0722-

SOFTWARE ENTREPRENEURSHIP: KNOWLEDGE NETWORKS AND PERFORMANCE OF SOFTWARE VENTURES IN CHINA AND RUSSIA

This study examines the impact of entrepreneurs’ network structure and knowledge homogeneity/heterogeneity of their network members on product development, and revenue growth of software ventures in China and Russia. The empirical data are composed of structured interviews with 159 software entrepreneurs in Beijing and Moscow. The study found that structural holes and knowledge heterogeneity affect positively product diversity in interactive ways. The study also found that knowledge homogeneity accelerates product development. Product development speed enhances revenue growth in the long term. However, the combination of speed with dense and homogeneous networks harms revenue growth over time. The effects of structural holes and knowledge heterogeneity on product diversity and revenue growth over time are more salient in Russia due to the unique institutional, social, and cultural conditions present in the country.http://deepblue.lib.umich.edu/bitstream/2027.42/40137/3/wp751.pd

A new measure for community structures through indirect social connections

Based on an expert systems approach, the issue of community detection can be conceptualized as a clustering model for networks. Building upon this further, community structure can be measured through a clustering coefficient, which is generated from the number of existing triangles around the nodes over the number of triangles that can be hypothetically constructed. This paper provides a new definition of the clustering coefficient for weighted networks under a generalized definition of triangles. Specifically, a novel concept of triangles is introduced, based on the assumption that, should the aggregate weight of two arcs be strong enough, a link between the uncommon nodes can be induced. Beyond the intuitive meaning of such generalized triangles in the social context, we also explore the usefulness of them for gaining insights into the topological structure of the underlying network. Empirical experiments on the standard networks of 500 commercial US airports and on the nervous system of the Caenorhabditis elegans support the theoretical framework and allow a comparison between our proposal and the standard definition of clustering coefficient

SOFTWARE ENTREPRENEURSHIP: KNOWLEDGE NETWORKS AND PERFORMANCE OF SOFTWARE VENTURES IN CHINA AND RUSSIA

This study examines the impact of entrepreneurs’ network structure and knowledge homogeneity/heterogeneity of their network members on product development, and revenue growth of software ventures in China and Russia. The empirical data are composed of structured interviews with 159 software entrepreneurs in Beijing and Moscow. The study found that structural holes and knowledge heterogeneity affect positively product diversity in interactive ways. The study also found that knowledge homogeneity accelerates product development. Product development speed enhances revenue growth in the long term. However, the combination of speed with dense and homogeneous networks harms revenue growth over time. The effects of structural holes and knowledge heterogeneity on product diversity and revenue growth over time are more salient in Russia due to the unique institutional, social, and cultural conditions present in the country.networks, knowledge, entrepreneurs, software, China, Russia.

How change agents and social capital influence the adoption of innovations among small farmers: Evidence from social networks in rural Bolivia

"This paper presents results from a study that identified patterns of social interaction among small farmers in three agricultural subsectors in Bolivia—fish culture, peanut production, and quinoa production—and analyzed how social interaction influences farmers' behavior toward the adoption of pro-poor innovations. Twelve microregions were identified, four in each subsector, setting the terrain for an analysis of parts of social networks that deal with the diffusion of specific sets of innovations. Three hundred sixty farmers involved in theses networks as well as 60 change agents and other actors promoting directly or indirectly the diffusion of innovations were interviewed about the interactions they maintain with other agents in the network and the sociodemographic characteristics that influence their adoption behavior. The information derived from this data collection was used to test a wide range of hypotheses on the impact that the embeddedness of farmers in social networks has on the intensity with which they adopt innovations. Evidence provided by the study suggests that persuasion, social influence, and competition are significant influences in the decisions of farmers in poor rural regions in Bolivia to adopt innovations. The results of this study are meant to attract the attention of policymakers and practitioners who are interested in the design and implementation of projects and programs fostering agricultural innovation and who may want to take into account the effects of social interaction and social capital. Meanwhile, scholars of the diffusion of innovations may find evidence to further embrace the complexity and interdependence of social interactions in their models and approaches." from Author's AbstractSocial networks, Agricultural innovation, Change agent, Social capital,

Network dynamics in regional clusters: The perspective of an emerging economy

Regional clusters are spatial agglomerations of firms operating in the same or connected industries, which enable innovation and economic performance for firms. A wealth of empirical literature shows that one of key elements of the success of regional clusters is that they facilitate the formation of local inter-organizational networks, which act as conduits of knowledge and innovation. While most studies analyze the benefits and characteristics of regional cluster networks and focus on advanced economies and high tech Ôhot spotsÕ, this paper advances with the existing literature by analyzing network dynamics and taking an emerging economyÕs perspective. Using longitudinal data of a wine cluster in Chile and stochastic actor-oriented models for network dynamics, this paper examines what micro-level effects influence the formation of new knowledge ties among wineries. It finds that the coexistence of cohesion effects (reciprocity and transitivity) and the presence of inter-firm knowledge base heterogeneity contribute to the stability of an informal hierarchical network structure over time. Empirical results have interesting implications for cluster competitiveness and network studies, and for the burgeoning literature on corporate behavior in emerging economies.Regional clusters, knowledge networks, network dynamics, wine industry, Chile

Where Can Capabilities Come From? How the Content of Network Ties Affects Capability Acquisition

While strategy researchers have devoted considerable attention to the role of firm-specific capabilities in the pursuit of competitive advantage, less attention has been directed at how firms obtain these capabilities from outside a firm's boundaries. This study analyzes how firms' network ties represent one important source of capability acquisition. Theoretically, we go beyond the traditional focus on network structure and offer a novel contingency model that specifies how differences in the content of network ties (e.g., buyer-supplier, equity, and director ties) will differentially affect the process of R&D capability acquisition. Empirically, we also seek to provide an original contribution to the capabilities literature by utilizing a stochastic frontier estimation to rigorously measure firm capabilities, and we demonstrate the value of this approach using longitudinal data on business groups in emerging economies. The supportive results of our analysis show that the effect of network ties on the acquisition of new affiliate capabilities is clearly and predictably contingent on the content of the ties.