Week 4 - proven article - 6 questions Flashcards
(28 cards)
What is a “whole” network?
The whole network is viewed here as a group of three or more organizations connected in ways that facilitate achievement of a common goal. Only by examining the whole network can we understand such issues as how networks evolve, how they are governed and ultimately, how collective outcomes might be generated.
What are Dyads?
Dyads are relationships between two organizations.
Egocentric or organization-level theories and related research can help to answer questions such as……
➢ A: The impact of dyadic or network ties on organizational performance; ➢ B: Which types of links are most or least beneficial to individual network members; ➢ C: Which network positions might be most or least influential; ➢ D: How the position of organizations in a network might shift over time in response to changes within and outside the network.
The clearest comparative distinction can be made by focussing on structural issues. Structural issues that are commonly examined and used to explain networks and networks outcomes on an organizational or egocentric level include the following:
In-degree and out-degree centrality Closeness centrality “Betweenness” centrality Multiplexity Broker relationships Cliques
What is In-degree and out-degree centrality
In-degree and out-degree centrality: Does an organization occupy a central or more peripheral position in the network based on the number of network ties it maintains with other organizations? Degree centrality is based on the number of direct links maintained by an organization with others in the network. Calculation of in-degree and out-degree centrality is also possible and is based on the extent to which assets such as resources, information, and clients are coming into an organization from others in the network versus those being sent out to other organizations.
What is Closeness centrality?
Closeness centrality: Is an organization in a structural position to spread such assets as information or knowledge that might reside in any organization in the network, even through indirect ties? Central organizations have short paths (connections) to all other organizations in the network. Closeness centrality is thus calculated by considering the shortest path connecting a focal organization to any other organization in the network. Direct connections, where A is connected to B, are shorter than indirect ones, where A is connected to B only indirectly through ties to C, which is directly tied to B. Unlike the case with degree centrality, in closeness centrality, indirect connections are viewed as valuable mechanisms for exchange of network-based resources.
What is “Betweenness” centrality?
“Betweenness” centrality: Does an organization serve as a gatekeeper within the network? If so, it must maintain intermediary links between organizations that are not directly connected with one another. Hence, the organization’s betweenness centrality is calculated by considering the extent to which an individual’s position in the network lies between the positions of other individuals.
What is Multiplexity?
Multiplexity: What is the strength of the relationship an organization maintains with network partners, based on the number of types of links (e.g., research ties, joint programs, referrals, and shared personnel) connecting them? Multiplex ties are thought to be an indicator of the strength and durability of an organization’s links because they enable the connection between an organization and its linkage partner to be sustained even if one type of link dissolves.
What is Broker relationships?
Broker relationships: To what extent does an organization span gaps or structural holes in a network and what are the implications of this for the organization? Organizations that span structural holes are considered to be brokers, often occupying positions of considerable influence.
What are Cliques?
Cliques: Cliques are clusters of three or more organizations connected to one another. At the egocentric level, the extent of an organization’s connectedness to a clique may affect organizational outcomes in ways that are different than when the organization is connected only through a dyad.
What is the network-level perspective?
Network-level perspective focusses on the overall network structure and processes, such as centralization or density of the network as a whole, instead of examining how organizational centrality might affect the performance of other individual organizations. This perspective presumes that a network involves many organizations collaboratively working toward a more or less common goal and that the success of one network organization may or may not be critical to the success of the entire network and its customer or client group.
What are the 5 strcuture indications of the network as a whole? (network-level perspective)
➢ Density: What is the overall level of connectedness among organizations in the network? ➢ Fragmentation and structural holes: Are all or most network members connected? ➢ Governance: What mechanism is used to govern and/or manage the overall network? ➢ Centralization: To what extent are one or a few organizations in the network considerably more centrally connected than others? ➢ Cliques: What is the clique structure of the overall network?
Network-level perspective: Explain Density
Density: What is the overall level of connectedness among organizations in the network? Are some networks more fully connected than others? And more importantly, how much density is beneficial versus detrimental to the effectiveness of the network? Higher levels of density are not necessarily advantageous, especially in light of the increased coordination burden placed on network members.
Network-level perspective: Explain Fragmentation and structural holes
Fragmentation and structural holes: Are all or most network members connected, either directly or indirectly (i.e., through another organization), or is the network broken into fragments of unconnected organizations, dyads and cliques? Fragmented networks may exhibit connections among organizations that are themselves unconnected or only loosely connected to other clusters of connected organizations. This means that the network has many structural holes.
Network-level perspective: Explain Governance
Governance: What mechanism is used to govern and/or manage the overall network? Even if networks are considered as a distinct form of governance, the mechanism used can considerably vary and range from self-governance to hub-firm or lead-organization governed, to a network administrative organization (NAO) model.
Network-level perspective: Explain Centralization
Centralization: To what extent are one or a few organizations in the network considerably more centrally connected than others? Highly centralized networks may be organized in a manner approximating a hub-and-spoke pattern, recently popularized as scale-free networks. Decentralized networks are far more dispersed with links spread more evenly among members.
Network-level perspective: Explain Cliques
Cliques: What is the clique structure of the overall network? How many cliques exist? Which types of organizations are involved? How large are the cliques? Are they connected to other cliques or fragmented? How much overlap is there across cliques, depending on the type of link involved?
Leren - Proven - Dense ties improve performance
Findings suggested that both general network structure and the positioning of each organization within the network influence the information that is conveyed through the network. The density of ties in a network, particularly density overlap, tends to increase over time. Dense ties improve performance.
Leren 2 - proven - centralization / differentiation
Although centralization facilitates integration and coordination in a network, density and centralization cannot simultaneously be maximized. Some tradeoff between the two must occur, and the existence of a large number of ties does not necessarily mean that the network is centralized. There is some trade-off between centralization and differentiation. High differentiation occurs with low centralization, suggesting that attempting a broad scope of activity is difficult to centrally coordinate. High differentiation in networks proves to be important for the identification of unique clusters of organizations within networks. Cliques, subnetworks, or clusters within networks are prevalent and can play important roles in the creation of positive outcomes. Network effectiveness can be explained through the intensive integration (where service links overlap) via network cliques.
How do network (structures) develop over time?
Network development may be seen as the result of the use not only of resources but also of rules and norms produces as steering mechanisms to drive development in the network. These rules are dependent on the meaning the individual actors attach to them, so the development of the network is dependent on the knowledge of those mechanisms and the meanings, goals, and values of all organizations within the network. A key group of nodes (organizations) within the network and their leaders often play a central role as the main carriers of those rules and practices. A dominant core within the network may drive how the network develops and/or evolves with dominant logics at the network and community levels.
Explain resource availability, legitimacy and reputation
Resource availability also strongly influences the ability to gain legitimacy and facilitate network development. Legitimacy and reputation are generally very important in collaborations in networks where collaborations among organizations vary over time. Key actors seen as the most reputable maintain control over the network over time, even when there is no control over the allocation of available resources in the network. Key organizations can shape the evolution of the network by focusing time and energy on educating stakeholders and other organizations within the network.
What are the three distinct types of governance within networks
➢ Shared governance networks occur when the organizations composing the network collectively work to make both strategic and operational decisions about how the network operates. There is no unique, formal governance structure other than through the collaborative interactions among members themselves. Control over activities may be formally conducted through the meeting of network members or more informally conducted through ongoing interactions and collaboration. ➢ Lead-organization (focal firm) or hub-firm governance occurs in networks in which all organizations may share a common purpose (strategy) but where there is a more powerful, perhaps larger, organization that has sufficient resources and legitimacy to play a lead role. Activities and decision making are coordinated through a single organization or small group of organizations that are responsive to network members. A lead organization provides products and services and conducts business much like the other members of the network but is also responsible for the maintenance of existing internal relationships and the development of external relationships. ➢ Network Administrative Organization (NAO) governance is similar in nature to the lead organization model in that all decisions are coordinated through one organization. The difference is that the NAO is an organization (or even an individual) specifically created to oversee the network. The NAO is not involved in the manufacturing of goods or provision of services, unlike a lead-organization. The task of the NAO may be primarily to support (rather than execute) network leadership so that this type of governance may sometimes coexist with one of the other two.
Do inter-organizational networks always result in postive outcomes? explain
No, the performance-enhancing effects of networks, inter-organizational networks do not always result in positive outcomes. Under certain conditions, a cooperative network can have negative effects on the whole economy (e.g. cartels) and may prove to be a structural source of unstable competitive advantage between organizations or even between regions.
Where does the sustainability of networks depend on?
Sustainability of networks is largely dependent on both internal and external legitimacy and support in the early stages of evolution. Networks that are formally constructed and do not emerge out of previous relationships are more likely to fail. Stability of the whole network is in part dependent on the types of relationships occurring within subnetworks, based on their small-world properties.
