slides - Chrissnijders

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Transcript slides - Chrissnijders

Social Networks

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Obesity as a networked concept 2

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The same goes for smoking …

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www.tue-tm.org/INAM

 All course info, literature, slides, and messages can be found here.

Check regularly!

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Today

 Course design and content  Introduction to network analysis and concepts

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Lecturers

Chris Snijders Uwe Matzat Rudi Bekkers Mila Davids Gerrit Rooks [email protected] [email protected]

[email protected]

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The course: organization

 Three courses: 0ZM05 (5 ects) 0EM15 (6 ects) 0A150 (3 ects)  Lectures every week on Wednesdays, hours 7 and 8. Later in the program less lecture time, more "assignment time" (see the course website).

 Different courses, so not everybody has to do the same ...

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Topic

Basic stuff (about 5 lectures) Assignment CS Assignment UM Personal and business networks + assignment GR Dynamic capabilities and knowledge transfer in networks Exam

0em15

Yes Yes Yes No Yes

0zm05

Yes Yes Yes No No

0a150

Yes (have to be there) Yes No Yes No Yes Yes No + survey completion (so that you experience what a network survey feels like, and we can analyze the data during class and assignments)

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Course requirements

 0em15/0zm05: Two (group of 2) assignments + written exam. Grade = 50% assignments + 50% exam. Both assignments and the exam should be at least a 4.0. Final grade should be at least 5.5.

For 0a150 it’s the average of the two assignments, where both should be at least 4.0 and the average at least 5.5

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To do: register in Studyweb (if possible)

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Course aim

knowledge about concepts in network theory, and being able to apply that knowledge (with an emphasis on innovation and alliances)

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The setup in some more detail

Network theory and background Introduction: what are they, why important … Four basic network arguments Kinds of network data (collection) Typical network concepts Visualization and analysis

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It’s about making our 'social space' visible

"If we ever get to the point of charting a whole city or a whole nation, we would have … a picture of a vast solar system of intangible structures, powerfully influencing conduct, as gravitation does in space. Such an invisible structure underlies society and has its influence in determining the conduct of society as a whole."

Jacob L. Moreno

New York Times

, April 13, 1933

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We live in a connected world

TU/e - 0ZM05/0EM15/0A150 “To speak of social life is to speak of the association between people – their associating in work and in play, in love and in war, to trade or to worship, to help or to hinder. It is in the social relations men establish that their interests find expression and their desires become realized.”

Peter M. Blau

Exchange and Power in Social Life

, 1964

Why do networks matter?

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Why do networks matter?

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Social Networks – a (cheesy) introduction

http://www.youtube.com/w atch?v=6a_KF7TYKVc

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Social network analysis – it's core

An interdisciplinary perspective emphasizing structural relationships as key explanatory concepts and principles: • Structural properties of social formations are contexts that shape the perceptions, beliefs, attitudes, and actions of individuals and collectivities • Social influence and collective action may be facilitated and/or constrained by direct and indirect exchanges (transactions) among social actors possessing differential resources (e.g., information) • Actors and transactions/interactions between actors are embedded , i.e. located within actual situational contexts

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The network perspective Two firms in the same market.

Which firm performs better (say, is more innovative): A or B?

A B

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This depends on:

•Cost effectiveness •Organizational structure •Corporate culture •Flexibility •Supply chain management •…

The network perspective Two firms in the same market.

Which firm performs better (say, is more innovative): A or B?

A B and ... on the structure of the network

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Note Networks are one way of dealing with “market imperfection” 24

Multi-level and interdisciplinary

Network applications appear in economics) diverse substantive fields mostly social sciences – anthropology, management, political science, public health, sociology (and recently also in of Studies span micro- meso- & macro-levels of analysis: • personal social & health support systems • children’s play groups, high school cliques • employee performance • neighboring behavior, community participation • work teams, voluntary associations, social movements • military combat platoons, terrorist cells • corporate strategic alliances, board interlocks • international relations: trade, aid, war & peace •Internet relations: Twitter, LinkedIn, Facebook

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It's a science ...

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Example: crime research Example topics

-"Cold case" research - forensic psychiatry -(youth) crime -...

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Articles with Network* Keyword 5000 4000 3000

SocAbs

2000

EconLit

1000

4/25/2020

0 1965-70 1970-75 1975-80 1980-84 1985-89 1990-94 1995-99 2000-04 YEAR

SOURCES: Sociological Abstracts, EconLit

Network analysis: origins

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Started in 1920s, Jacob L. Moreno pioneered social network analysis for his “psychodrama” therapy. He used sociomatrices and hand-drawn sociograms to display children’s likes and dislikes of classmates as directed graphs ( digraphs ).

Moreno’s socio-matrix

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… displayed as a sociogram

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Example: A targeted approach to HIV prevention

Think about similar examples for: • Introduction of new products into target groups • …

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Modern computing makes a big difference

“Visualization has been a key component of social network analyses from the beginning, proliferating into today’s dazzling computer-based multidimensional displays” (Freeman 2001)

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Social network software 1) 2) 3) UCINet – Many things on network analysis Lin Freeman, Steve Borgatti, Martin Everett MultiNet – Whole Network Analysis + Nodal Characteristics P*Star – Dyadic Analysis – Stan Wasserman 4) 5) 6) 7) NodeXL (an Excel plugin) – Marc Smith Pajek – Network Visualization – Supersedes Krackplot StocNet – Tom Snijders - collected programs for, e.g., analysis of dynamic networks … and many others

NB Even though computers are fast, really large networks can still be a real problem

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Definitions and other boring stuff

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Social network basics

 A network (or graph) contains a set of actors (or nodes, objects, vertices), and a mapping of relations (or ties, or edges, connections) between the actors 1 2 For instance: Actors: persons Relationships: “participates in the same course as” Or: Actors: organizations Relationships: have formed an alliance

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Social network concepts: ties

 Relationships can be directed: 1 2 For instance: person 1 likes person 2  Symmetrical by choice: 1 Person 1 likes 2, 2 likes 1  Symmetrical by definition: 1 Person 1 is married to 2 (usually depicted as) 1 2 2 2

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Social network concepts: weights

 Relationships can carry weights : 1 3 2 4 Actors: persons Relationships: know each other 3 and 4 know each other better (stronger tie)  Actors can have a variety of properties associated with them:    

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Social networks: translating arguments

There is reciprocity: whenever there is a tie from a to b, there also is a tie from b back to a Actor A is powerful: many connections go through A 1 2

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Quantifying matters through network concepts

 Actor characteristics:  outdegree    indegree betweenness ... (and many more)  Network characteristics  density    segmentation distribution of outdegrees ... (and many more)

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More examples 41

An example of a modern network: 9-11 Hijackers Network

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SOURCE: Valdis Krebs http://www.orgnet.com/

OECD Trade Flows 1981-1992

Note: practical use of visualization diminishes as networks grow larger SOURCE: Lothar Krempel http://www.mpi-fg-koeln.mpg.de/~lk/netvis.html

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Internet facilitates social networking…

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… for recreational use …

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… also for business purposes …

http://www.youtube.com/watch?v=6SSR2tg5n_U

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http://www.vivalogo.com/vl-resources/open source-social-networking-software.htm

BTW Lots of businesses are willing to do the dirty work for you …

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SOURCE: Brandes, Raab and Wagner (2001)

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… and can be restructured to reveal the “real” hierarchy!

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Networks and innovation

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Why networks & innovation?

 Classic innovation studies focus mainly on characteristics of individuals or firms to explain innovation  e.g. firm size and innovativeness  However, innovation, is inherently social in nature  e.g. firms have relations with other firms and consequently access to additional external resources  Hence, networks of social relations between actors  (individuals and organizations) may be important factors in explaining innovation  and innovation may change networks of social relations as well

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Why networks and alliance management?

The knowledge economy is a network economy

Third Industrial Revolution Second Industrial Revolution CEO Guild Master Master Master Staff Divisions

Networked model: Economies of skill:

-access to knowledge -co-development -leverage knowledge -focus on core

competences

-learn and innovate

‘Stand alone’ model:

- Economies of scale - Optimize assets Pupil Pupil Pupil Organizational models are transforming from “stand alone” to “networked”

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CEOs rate alliances among the most important management tools

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Bain researched the 25 most popular management tools in a survey among 960 international executives

• Alliances are among the 10 most widely used tools by top executives • 63% of them use alliances • Note that other tools involve alliance and network related aspects as well: CRM, outsourcing, growth strategies, supply chain management Source: Rigby, 2005, Management Tools 2005, Bain & Company

Alliances lead to networks

Network in Flat Screens 2000-2001 Source: De Man, 2006,

Alliantiebesturing

In 2 years time 75% of the firms in the industry are directly or indirectly connected

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Network questions and arguments

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Typicalities of network arguments

 Non-linear effects can occur easily (cf “Small world phenomenon”) in networks [lecture 3]  Data collection often daunting = “is being eaten by”

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Typical network related questions



Which of these actors has the best position in the network?

 Example: firms in alliance networks 

Which kinds of networks are best for <…> purposes?

 Example: R&D teams 

Which are the key relations in the network?

 Example: terrorism

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Networks = Y or Networks = X

In most social science applications, networks are considered as an independent variable

For instance Firm A performs better than B because firm A is embedded in a network with a lot of ties (a network of higher “density”) or Person A performs better than B because person A has a lot of ties to other persons and person B doesn’t (firm A has a higher “outdegree”)

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Networks = Y or Networks = X

Sometimes: networks as the dependent variable For instance: How do the social networks of successful people differ from the social networks of others? (and why is that?) And, even rarer: dynamic network theory For instance: How do the friendship networks of people change over time?

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Using network arguments...

 Make sure that you define the actors/nodes, and what the ties between them represent (directed?, weighted?).

 Make clear how and what (kind of) network characteristics drive your result. There are so many network characteristics … think hard!

 Shop around for arguments in areas unrelated to your own! (where perhaps only the nodes and the ties are different!) “The best ideas already exist”

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

Closure

competitive advantage stems from managing risk; closed networks enhance communication and enforcement of sanctions 

Brokerage

competitive advantage stems from managing information access and control; networks that span structural holes provide the better opportunities 

Contagion

observable behavior of others is taken as a signal of proper behavior. [1] information is not a clear guide to behavior, so contagion by cohesion : you imitate the behavior of those you are connected to [2] contagion by equivalence : you imitate the behavior of those others who are in a structurally equivalent position 

Prominence

information is not a clear guide to behavior, so the prominence of an individual or group is taken as a signal of quality

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To Do:

 follow the directions on

www.tue-tm.org/INAM

 Studyweb: register!

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