Appeared in a movie together shop at the same store, entered into a
business contract together
Likes, gave gift to, sent economic aid, bought from, sol to, gave loan to, is
brother to, sends diplomats to, owes a favor to
RELATIONS AMONG FIRMS-
Standard business relations: formalized, short term, self interested
Closer relations, often negotiated informally on implicit understandings,
often include personal ties in addition to business
ADVANTAGES AND DISADVENTAGES IN EMBEDDED
Trust, information, joint problem-solving
Too heavy reliance on one partner, stagnant
relations, slow to innovate
CONCLUSIONS: BEST PERFORMING FIRMS
HAVE MIS OF TIES—CAN’T HAVE TOO MANY “EMBEDDED” TIES
Strength of friendship, how many papers coauthored, how much aid sent,
number of flights between cities, how much stock sold
Networks- are made into a set of nodes: people, firms, organizations, countries, etc.
Set of ties: relationships among nodes (also called links, edges)
The strength of an interpersonal tie is a combination of the
Amount of time, emotional intensity, intimacy and reciprocal
services that characterize a tie. A tie can be absent, weak or strong
IMPLICATIONS OF STRONG TIES
Individuals a and b. The set s= (c, d, e…) of all individuals with
ties to either or both of them
Hypothesis: The stronger the tie between A and B the
larger the proportion of individuals in S to whom they will both be tied.
BRIDGE-line in a network that provides the only path between two nodes
If forbidden triad is absent, strong tie cannot be a bridge.
Not all weak ties are bridges but all bridges are weak ties.
Weak ties spread information to more people across wider social distances
than strong ties.
For a job searcher weak ties should bring in
Greater quantity of information
Greater diversity of information