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SOCIAL NETWORKS OF
PEOPLE IN ORGANIZATIONS
DISCUSSION
“Economic and organizational sociologists have
increasingly demonstrated that the actions of individuals
and firms are affected by the social networks within which
they are embedded” - Mizruchi, Stearns, and Marquis (2006)
“‘ Economic action can be fully understood only by an
examination of the social relation within which actors are
embedded’ has become a widely accepted staple of
sociological thought” - Granovetter (1985)
DISCUSSION
What are the most important ways in which
intra-organizational networks can affect firm
performance?
DISCUSSION
Intra-organizational Networks
Firm Performance
FIRM PERFORMANCE
Degrees of Certainty
Innovation
Loyalty
Work Attitudes
Retention
Organizational Commitment
Job Satisfaction
Information Sharing
Motivation
EFFICIENCY
 Approval Networks

For support
 Information Networks

For knowledge
TURNOVER & ABSENTEEISM
 A Micro Perspective – Positive/Negative
 Consideration – Friendship Ties
CLOSE
TO
LEAVERS/ABSENTEES
NOT CLOSE
TO
LEAVERS/ABSENTEES
NOT CLOSE
TO
STAYERS
Highest Impact
Neutral Impact
CLOSE
TO
STAYERS
Neutral Impact
Lowest Impact
MOTIVATION & WORK ATTITUDE
 Equity Theory (Stacy Adams, 1965)

Comparison with others
 Strong Ties
 Similarity in Roles or Status