Social Networks in Organizations:

Antecedents and Consequences

Daniel J. Brass
DBRASS@U!."DU
After receiving his Ph.D. from University of Illinois, Dan spent 20 years at Penn State
University. He has recently assumed a ne position as !. Henning Hilliard Professor of
Innovation "anagement at the University of #entuc$y%s &atton 'ollege of (usiness and
)conomics, School of "anagement, *e+ington, #,, -0.0/0001-. He also currently
serves as Associate )ditor of Administrative Science Quarterly.
Antecedents o# Social Networks
$n Organizations
%&'sical and (e)*oral %ro+i)it'

2estinger, Schacter, 3 (ac$, 45.0 0 physically close neigh6ors 6ecame
friends.
"onge 3 )isen6erg, 4578 0 telephone, e0mail may moderate, 6ut
pro+imate ties are easier to maintain and more li$ely to 6e strong,
sta6le, positive.
(orgatti 3 'ross, 2001 9 pro+imity mediated the relationship 6eteen
$noing hat the person $nos, valuing it, and timely access ith
information see$ing
,ork#low and -ierarc&'
*incoln 3 "iller, 4585 0 hierarchy related to closeness centrality in 6oth
friendship and or$0related communication netor$s.
:ichy 3 2om6run, 4585 0 informal netor$s overlapped more closely in
mechanistic than organic organi;ations
(rass, 4574 0 Informal netor$s tend to <shado< formal re=uired
interactions.
Sharder, *incoln, 3 Hoffman, 4575 0 1/ agencies> organic organi;ations
characteri;ed 6y high density, connectivity, multiple+ity, and
symmetry, lo num6er of clusters ?or$0related communication@.
(ur$hardt 3 (rass, 4550 9 change in technology led to change in
netor$. )arly adopters gained centrality and poer.

Actor Si)ilarit' .-o)o*&il'/
(rass, 457.> "cPherson 3 Smith0*ovin, 4578> I6arra, 4552, 45516>
many others

)vidence for homophily ?interaction ith similar others@ on age, se+,
education, prestige, social class, tenure, function, religion,
professional affiliation, and occupation.

"ehra, #ilduff, 3 (rass, 4557 0 minorities are marginali;ed.
2eld, 45740 activities are organi;ed around <social foci< 0 actors ith
similar demographics, attitudes, and 6ehaviors ill meet in similar
settings, interact ith each other, and enhance that similarity.
&i66ons 3 Al$, 2001 9 similar ethnic identification led to friendship and
similar centrality> structural similarity led to friendship. Initial
conditions have impact on netor$ formation.

%ersonalit'
"ehra, #ilduff, 3 (rass, 2004 0 self0monitoring related to
6eteenness centrality.
#lein, *im, Salt;, 3 "ayer, 200- 9 variety of personality factors related
to in0degree centrality in advice, friendship and adversarial netor$s


Consequences o# Social Networks
$n Organizations
Attitude Si)ilarit'
)ric$son, 4577 0 theory on <relational 6asis of attitudes.<

Bal$er, 457. 0 structural e=uivalents had similar cognitive maps
of means0ends regarding product success.
#ilduff, 4550 0 "(A%s made similar decision as friends regarding
Co6 intervies.

Dice 3 Aydin, 4554 0 attitudes a6out ne technology similar to
those ith hom you communicate fre=uently and supervisors.
)stimates of others% attitudes EA: correlated ith actual attitudes
of others.
&alas$ieic; 3 (urt, 4554 0 structural e=uivalents had similar
evaluations of non0profit organi;ations.
(ur$hardt, 455- 0 longitudinal study, cohesive and structurally e=uivalent
actors had similar personal and tas$0related attitudes respectively.
Pastor, "eindl 3 "ayo 2002 9 reciprocated dyadic ties in
communication and friendship netor$s had similar attri6utions
of charisma of leader.
Umphress et al., 2001 0 affective netor$s related to similarity in
perceptions of distri6utive and interactional Custice, 6ut not procedural
Custice.
&i66ons, 200- 9 longitudinal study, advice netor$ functions as
sta6ili;er of values, friendship netor$ functions as a catalyst for
change ?more illing to share ne ideas ith friends@.
Jo0 Satis#action and Co))it)ent

Do6erts 3 AFDeilly, 4585 0 peripheral actors ?;ero or one lin$@ less
satisfied than those ith to or more lin$s.

Sha, 45/- 0 revie of %.0s small0group la6 studies 0 central actors in
centrali;ed netor$s> all actors in decentrali;ed netor$s.

(rass, 4574 0Eo relationship, 6ut Co6 characteristics ?autonomy, variety,
etc.@ mediated the relationship 6eteen or$flo centrality and
satisfaction.

#ilduff 3 #rac$hardt, 4551 0 6eteenness centrality in friendship
netor$ negatively related to satisfaction.

(aldin, (edell, 3 !ohnson, 4558 9 10- "(A students, Stephenson 3
Galen centrality in communication ?advice@, friendship, and
adversarial ?Hor difficult relationshipI@ netor$s related to satisfaction
ith program and team06ased learning.
"orrison, 2002 9 commitment related to range ?industry groups@, status
?hierarchy@, and strength ?closeness@ of friendship ties.
%ower

#no$e 3 (urt, 4571 0 asymmetric <prestige< measures of centrality
related to poer.
(rass, 457- 0 degree, closeness, and 6eteenness centrality in or$flo,
communication, and friendship netor$s related to poer>
distance to dominant coalition and departmental centrality most
strongly related to poer.
(rass, 457. 9 omen rated less influential, 6ut fe difference in netor$J
predictors of influence ?centrality, integration into menFs and dominant
coalitionFs netor$s@. Integration into omenFs netor$ related to
influence for men, 6ut not omen.

(ur$hardt 3 (rass, 4550 0 longitudinal study 0 centrality preceded
poer, early adopters of ne technology gained in0degree centrality
and poer.

#rac$hardt, 4550 0 $noledge of netor$ related to poer.
(rass 3 (ur$hardt, 4551 0 centrality and influence strategies each
mediated the other in relation to poer.
&argiulo, 4551 9 to0step leverageK managers 6uilt strong relationships
ith people ho may constrain the performance of the party on hom
they depend.

Sparroe 3 *iden, 200. 9 centrality related to poer> 10ay interaction
6eteen *"L, leader centrality, and su6ordinate overlap ith
leaderFs netor$.

1eaders&i*

*eavitt, 45.4> ?see Sha, 45/- for revie@ 0 central actors in centrali;ed
structures chosen as leaders.
Sparroe 3 *iden, 4558 0 e+tend *"L theory to social netor$s, ho
social structure facilitates the e+change.
(rass 3 #rac$hardt, 4555 0 theory of leadership and netor$s.
Pastor, "eindl 3 "ayo, 2002 0 attri6utions of charisma related to
netor$ pro+imity in communication and friendship netor$s.
"ehra et al., 200. 0 leadersF centrality in e+ternal and internal friendship
netor$s as related to o6Cective measures of group performance and
to their personal reputations for leadership among different
organi;ational constituencies.
2etting a Jo0

&rannovetter, 4581, 4572, 455.> De &raff 3 2lap, 4577>
"arsden 3 Hurl6ert, 4577> Begener, 4554> many others
Bea$ ties instrumental in finding Co6s> mi+ed results, several
contingencies.
High status persons gain from 6oth strong and ea$ ties, lo status
persons gain from ea$ ties.
See 2lap 3 (o+man, 4555 in S.". &a66ay 3 D. *eenders, <'orporate
Social 'apital and *ia6ility< for recent revie.
2ernande;, 'astilla, 3 "oore, 2000 0 netor$ referrals and turnover,
<richer pool, 6etter match, social enrichment.< )conomic 6enefits for
the organi;ation.
2etting A&ead

(rass, 457-, 457. 0 central ?closeness 3 6eteenness@ actors in
departments promoted during folloing three years.

(o+man, De &raaf, 3 2lap, 4554 0 41.5 Dutch managers, e+ternal or$
contacts and mem6erships related to income attainment and level of
position ?num6er of su6ordinates@ controlling for human capital
?education and e+perience@. Deturn on human capital decreases as
social capital increases. Eo difference for men and omen.
(urt, 4552 0 Bhite males ho ere promoted =uic$ly had structural
holes in their personal netor$s> omen and ne hires did not 6enefit
from structural holes.
(urt, 4558 0 6ridging structural holes most valua6le for managers ith
fe peers.
Podolny 3 (aron, 4558 9 mo6ility enhanced 6y having a large, sparse
informal netor$
Seidel, Pol;er 3 Steart, 2000 9 social ties to the organi;ation increased
salary negotiation outcomes.
Sei6ert, #raimer 3 *iden, 2004 9 ea$ ties and structural holes in career
advice netor$ related to social resources hich in turn as related to
salary, promotions over career, and career satisfaction.
Higgins 3 #ram, 2004 9 develop a typology of developmental netor$s
6ased on tie strength and diversity. Propositions e+plore antecedents
and conse=uences of four developmental types.


$ndi3idual %er#or)ance

Do6erts 3 AFDeilly, 4585 0 participants ?to or more ties@
6etter performers than isolates ?one or less ties@.
(rass, 4574> 457. 0 or$flo centrality and performance
mediated 6y Co6 characteristics ?autonomy, variety@>
performance varied 6y com6ination of technological
uncertainty, Co6 characteristics, and interaction
patterns.
#ilduff 3 #rac$hardt, 455- 9 6eing perceived as having a
poerful friend related to reputation for good
performance ?actually having a poerful friend not
related@.
(aldin, (edell, 3 !ohnson, 4558 9 Stephenson 3
Galen centrality in communication ?advice@
netor$ related to grades of "(A students.
2riendship and adversarial centrality not related.
Eo relationship ith group performance.

*a;ega, 4555 9 in collegial la firm, em6eddedness ?high constraintM lo
structural holes@ positively related to performance.
Sparroe, *iden, Bayne 3 #raimer, 2004 9 in0degree
centrality in advice netor$ related to supervisorsF
ratings of performance. Hindrance netor$ ?Hdifficult
to carry out your Co6I@ density negatively related to
group performance.
"ehra, #ilduff, 3 (rass, 2004 9 6eteeness
centrality related to supervisorsF ratings of
performance.
'ross 3 'ummings, 200- 9 ties to diverse
others related to performance in $noledge
intensive or$.
2rou* %er#or)ance
Sha, 45/- 0 revie of small group la6 studies 9
'entrali;ed netor$s efficient for simple tas$s>
decentrali;ed netor$s efficient for comple+,
uncertain tas$s.
U;;i, 4558 0 em6edded relationships ?trust, fine0grain
information, Coint pro6lem solving@ can have
6oth positive and negative economic outcomes
?small firms in garment industry@.
Hansen, 4555 0 ea$ interunit ties speed up group
proCect completion times hen needed
information is simple, 6ut slos them don
hen $noledge to 6e transferred is comple+.
Bea$ ties help search activities> strong ties help
$noledge transfer.
&argiulo 3 (enassi, 4555 9 constraint ?lo structural holes@ related to
coordination failures ?high tas$ interdependence coupled ith lo
consultation@.
:sai, 2004 9 in0degree centrality in $noledge transfer
netor$ ?among units@ interacted ith a6sorptive
capacity to predict 6usiness unit innovation and
performance.
Deagans, Guc$erman, 3 "c)vily, 200- 9 internal density and
e+ternal range in $noledge sharing netor$ related to group
performance ?as measured 6y proCect duration@.
Ah, 'hung, 3 *a6ianca, 200- 9 internal density ?inverted U relationship@
and num6er of 6ridging relationships to e+ternal groups in informal
sociali;ing netor$ related to group performance ?as rated 6y
e+ecutives@.
(al$undi 3 Harrison, 200. 9 meta0analysis> density ithin teams, leader
centrality in team, and team centrality in intergroup netor$ related to
various performance measures.
(urno3er

#rac$hardt 3 Porter, 457., 457/ 0 turnover did not occur randomly, 6ut
in structurally e=uivalent clusters. :urnover of friends affected
attitudes of stayers ?more committed@.
Con#lict

Eelson, 4575 0 overall level of conflict in 20 organi;ations, strong ties
across groups negatively related to conflict.
*a6ianca, (rass, 3 &ray, 4557 0 friendships across groups not related
to perceptions of intergroup conflict, 6ut negative relationships ?prefer
to avoid@ ere related to higher perceived conflict. Indirect
relationships also related to perceptions of intergroup conflict.
Citizens&i* Be&a3ior
Settoon 3 "ossholder, 2002 9 In0degree centrality related to
supervisorsF ratings of person0 and tas$0focused interpersonal
citi;enship 6ehavior.
(oler 3 (rass, 200. 9 people performed interpersonal citi;enship
6ehavior for friends, poerful others, and friends of poerful others.
Creati3it'4$nno3ation
I6arra, 4551a 9 centrality ?asymmetric (onacich measure@ across five
netor$s related to involvement in technical and administrative
innovations.

(rass, 455. 9 essay on ea$ ties and creativity.
Perry0Smith 3 Shalley, 2001 9 theory of creative life cycle in terms of
netor$ position.
(urt, D. 200- 9 ideas from managers ith structural holes Cudged to 6e
more creative.
A6stfeld, 200. 9 tertius iugens orientation ?tendency to close structural
holes@, social $noledge ?ease in getting information@, and density
among egoFs contacts ?com6ined across several netor$s@ related to
involvement in innovation. Density positively related to structural
holes suggesting that closing holes may lead to reciprocation.
Unet&ical Be&a3ior
&ranovetter, 457. 0 effects of social structure on trust, malfeasance
?criti=ue of Billiamson economics@.
(a$er 3 2aul$ner, 4551 0 study of price fi+ing conspiracies ?illegal
netor$s@ in heavy electrical e=uipment industry> convictions,
sentences, and fines related to personal centrality, netor$ structure
?decentrali;ed@, and management level ?middle@.
(urt 3 #ne;, 455. 0 third parties strengthened and confirmed
e+isting attitudes ?trust and distrust@ through positive and negative
gossip> amplification effect, particularly for negative gossip.
(rass, (utterfield, 3 S$aggs, 4557 0 the effects of the constraints of types
of relationships ?strength, status, multiple+ity, asymmetry@ and
structure of relationships ?density, cli=ues, structural holes, centrality@
on unethical 6ehavior ill increase as the constraints of characteristcs
of individuals, organi;ations, and issues decrease, and vice versa.

Recent Re3iews
(orgatti 3 2oster, 2001, !A"
(rass, &alas$ieic;, &reve, 3 :sai, 200-, A"!
(a0le 5. :ypical Social Eetor$ "easure of :ies
Measure Definition Example
N indirect lin$s Path 6eteen to actors is mediated 6y one or
more others
A is lin$ed to (, ( is lin$ed to
', thus A is indirectly lin$ed
to ' through (
N fre=uency Ho many times, or ho often the lin$ occurs A tal$s to ( 40 times per ee$
N sta6ility )+istence of lin$ over time A has 6een friends ith ( for
. years
N multiple+ity )+tent to hich to actors are lin$ed together
6y more than one relationship
A and ( are friends, they see$
out each other for advice, and
or$ together
N strength Amount of time, emotional intensity,
intimacy, and reciprocal services ?fre=uency
or multiple+ity often used as measure of
strength of tie@
A and ( are close friends, or
spend much time together
N direction )+tent to hich lin$ is from one actor to
another
Bor$ flos from A to (, 6ut
not from ( to A
N symmetry
?reciprocity@
)+tent to hich relationship is 6i0directional A as$s for ( for advice, and (
as$s A for advice
(a0le 6. :ypical Social Eetor$ "easures Assigned to Individual Actors
Measure Definition
N Degree Eum6er of direct lin$s ith other actors
N In0degree Eum6er of directional lin$s to the actor from other actors ?in0coming lin$s@
N Aut0degree Eum6er of directional lin$s form the actor to other actors ?out0going lin$s@
N Dange
?Diversity@
Eum6er of lin$s to different others ?others are defined as different to the e+tent
that they are not themselves lin$ed to each other, or represent different groups
or statuses@
N 'loseness )+tent to hich an actor is close to, or can easily reach all the other actors in the
netor$. Usually measured 6y averaging the path distances ?direct and indirect
lin$s@ to all others. A direct lin$ is counted as 4, indirect lin$s receive
proportionately less eight.
N (eteenness )+tent to hich an actor mediates, or falls 6eteen any other to actors on the
shortest path 6eteen those to actors. Usually averaged across all possi6le
pairs in the netor$.
N 'entrality )+tent to hich an actor is central to a netor$. Oarious measures ?including
degree, closeness, and 6eteenness@ have 6een used as indicators of centrality.
Some measures of centrality eight an actorFs lin$s to others 6y the centrality
of those others.
N Prestige (ased on asymmetric relationships, prestigious actors are the o6Cect rather than
the source of relations. "easures similar to centrality are calculated 6y
accounting for the direction of the relationship ?i.e., in0degree@.
Doles
N Star An actor ho is highly central to the netor$
N *iaison An actor ho has lin$s to to or more groups that ould otherise not 6e
lin$ed, 6ut is not a mem6er of either group.
N (ridge An actor ho is a mem6er of to or more groups.
N &ate$eeper An actor ho mediates or controls the flo ?is the single lin$@ 6eteen one part
of the netor$ and another.
N Isolate An actor ho has no lin$s, or relatively fe lin$s to others.
(a0le 7. :ypical Social Eetor$ "easures Used to Descri6e )ntire Eetor$s
Measure Definition
N Si;e Eum6er of actors in the netor$
N Inclusiveness :otal num6er of actors in a netor$ minus the num6er of isolated
actors ?not connected to any other actors@. Also measured as the ratio
of connected actors to the total num6er of actors.
N 'omponent Su6set of netor$ actors and lin$s. All actors in the component are
connected ?either direct or indirect lin$s@ and no actors have lin$s to
nodes outside the component.
N 'onnectivity
?Deacha6ility@
)+tent to hich actors in the netor$ are lin$ed to one another 6y
direct or indirect ties. Sometimes measured 6y the ma+imum, or
average, path distance 6eteen any to actors in the netor$.
N 'onnectedness Datio of pairs of actors that are mutually reacha6le to total num6er of
pairs of actors
N Density Datio of the num6er of actual lin$s to the num6er of possi6le lin$s in
the netor$ Pn?n04@M2Q.
N 'entrali;ation Difference 6eteen the centrality scores of the most central actor and
those of other actors in a netor$ is calculated, and used to form ratio
of the actual sum of the differences to the ma+imum sum of the
differences
N Symmetry Datio of num6er of symmetric to asymmetric lin$s ?or to total num6er
of lin$s@ in a netor$.
N :ransitivity :hree actors?A, (, '@ are transitive if henever A is lin$ed to ( and
( is lin$ed to ', then ' is lin$ed to A. :ransitivity is the num6er of
transitive triples divided 6y the num6er of potential transitive triples
?num6er of paths of length 2@.
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