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Knowledge sharing is a fundamental source of competitive advantage. Social networks are thought to play an important role in knowledge sharing, but are presumed to create a trade-off such that a network can be optimized to promote either knowledge seeking or knowledge transfer, but not both. The trade-off, however, is premised on, and representative of a broader tendency to treat, brokerage and closure as contradictory network forms. We challenge this assertion and propose a theory of knowledge sharing with brokerage and closure as compatible and complementary. Evidence from a contract research and development firm broadly supports our theory. We also report the results of a simulation analysis, which illustrate that only in the extremely rare case when a network is characterized by nearly complete balance do brokerage and closure begin to create a trade-off.

The aim of this study is to discuss how social capital is developed in the internationalization process of small and medium‐sized family enterprises (family SMEs).

This paper reports findings from an in‐depth multiple case study with four Finnish manufacturing family SMEs. The data were analyzed through the perspectives of structural holes, network closure, and the interplay between these two mechanisms.

The material in the paper demonstrated that family entrepreneurs had a large number of structural holes when launching international operations, but also after several years of running international operations. Instead of trying to span structural holes, they concentrated merely on developing the network closure with agents and subsidiary staff. The case firms spent a lot of resources on finding suitable network ties and on developing good network closure with the selected social capital ties.

There are some aspects that might differ depending on the home and target country of firms. For instance, firms in some Asian countries are able to utilize emigrant relationships that help them with networking, which was not the case here with Finnish family SMEs.

Family entrepreneurs seem to have a tendency to concentrate on a limited number of foreign partners, and to neglect the building of new relationships that could help them in future challenges.

This study: responds to calls for more research on network development in the entrepreneurial process, especially in the context of internationalization; introduces the notions of network closure and structural holes to the internationalization context; and reveals how social capital restricts and facilitates family SMEs' international operations.

Understanding China's economic success requires insights into its peculiar guanxi‐based market. Many scholars are confused about how to apply Western network theories to the guanxi‐based Chinese market. This paper aims to contribute to this comprehensive topic by theoretically exploring the differences among three fundamental network concepts: guanxi; structural hole; and closure.

Following Heide, the present paper categorises networks into three dimensions: network initiation, network maintenance and network termination, each based on different time phases. The three fundamental network concepts in every dimension are compared, laying out their similarities and dissimilarities in detail.

Although each of the three networks are initiated either naturally or artificially, guanxi is closely embedded in Chinese institutions. Unlike structural hole and closure, which can be applied at any level, guanxi is a special relation that only exists at the individual level. Structural hole and closure highlight the structures of the networks that bring them various benefits and constraints. Such merits are not evident in guanxi, in which favour exchange plays a crucial role in connecting entities. In addition, guanxi has special rules that affect the strength of ties.

The purpose of this paper is to articulate the differences among guanxi, structural hole and closure. The systematic framework provides a platform to scholars interested in applying the Western network theory to guanxi‐based markets. The study work also provides new insights to non‐Chinese actors doing business in China.

Massively multiplayer online role-playing games (MMORPGs) create quasi-real social systems in which players can interact with one another, and quasi-real economic systems where players can consume and trade in-game items with virtual currency. The in-game currency price, an important indicator of a virtual economy, is highly contingent on players’ behavioral interaction in MMORPGs. The purpose of this paper is to adopt a network perspective to examine how topological characteristics of social networks in an MMORPG, namely, network externalities, density, and closure, would exert impacts on the in-game currency price.

Players’ behavioral data were collected from a popular MMORPG in China on a weekly basis for 52 weeks. With a time series analytical approach, the empirical model for the price function of in-game currency was estimated with vector autoregression.

The results show that the number of core avatars and network density are positively associated with in-game currency price, while network closure has a negative effect on in-game currency price. However, in-game currency price is found to have no significant relationship with the trade volume of the currency.

This study fills in an important research gap by investigating factors influencing the in-game currency price of MMORPGs from a network perspective, which contributes to the existing literature of network effects and advances our understanding about how players’ interaction will influence the dynamics of a virtual economy. The findings could offer useful insights for online game companies to better understand their players’ social interaction and consumption behavior.

Organizational networks are generally considered major antecedents of mutual influence in adopting similar practices, typically via a structure of dense ties, or closure. We propose that under conditions of competitive interdependence, closure may be associated with links established to access resources and knowledge and become a possible source of differentiation rather than imitation. We test these and other antecedents of imitative behavior and performance in the Italian TV industry with 12 years of data on 501 productions. We find that network closure is associated with lower imitation, centrality, but not status, leads to imitation, and that imitation lowers performance.

Computer models are often used for studying the effects of changing conditions in the road network. State-of-the-art macroscopic models generally take some kind of network equilibrium approach and therefore have difficulties in appropriately representing short-term capacity reductions, probably resulting in too low estimates of delays. Recently developed dynamic models may be more promising. The purpose of this paper is to investigate the implications of model choice further, as well as the possibilities to study effects of short-term incidents. Three different computer programs were used: TRACKS, SATURN, and Paramics. The results show that microsimulation is a feasible tool for studying short-term disturbances in the road transportation system.

Building on relational inequality theory, this paper incorporates social capital as a device to trace the flow of resources through relationships originating within and beyond organizations. I draw on a survey of over 1,700 lawyers to evaluate key dynamics of social capital that shape earnings: bridging and bonding, reciprocity exchanges and sponsorship, and boundary maintenance. The findings show social capital lends a lift to law graduates through bridges to professional careers and sponsorship following job entry. Racial minorities, however, suffer a shortfall of personal networks to facilitate job searches, and once having secured jobs, minorities experience social closure practices by clients and colleagues that disadvantage them in their professional work. A sizeable earnings gap remains between racial minority and white lawyers after controlling for human and social capitals, social closure practices, and organizational context. This earnings gap is particularly large among racial minorities with more years of experience and those working in large law firms. The findings demonstrate the importance of identifying the interrelations that connect social network and organizational context to impact social inequality.

This paper aims to analyze the relationship between different kinds of networking and the performance of firms in industry clusters. In particular, it studies the importance of local embeddedness and external openness for product success in two wine clusters in Chile and Italy.

The analysis is based on original firm‐level data. A case‐study methodology is combined with econometric analysis.

The empirical analysis shows that local embeddedness positively influences the development of successful products, but with decreasing returns. More importantly, however, the author finds that external openness is more significant than local embeddedness for explaining firm success.

The paper has implications for managers not working in current “hot spots” who are keen to transform their environments into thriving economies. The author recommends that managers look beyond the local context and establish extra‐cluster linkages with relevant knowledge sources, which may vary from sector to sector. Managers should tap into local knowledge but avoid local over‐embeddedness.

The paper contributes to the understanding of how and whether networks influence the performance of cluster firms.

To stimulate further research aimed at understanding how value can be cocreated by participants in digital ecosystems, this paper draws attention to new ventures as focal actors in innovation ecosystems orchestrated by hub firms.

This is a conceptual article that imports the notion of network oscillation (a pattern of brokerage-closure-brokerage) from social network studies to the conversation on digital ecosystems.

One potential pattern that a new venture may pursue to increase its prospects of cocreating value in an innovation ecosystem includes: (1) brokerage to gain managerial attention from a business unit of the hub firm, (2) switching to closure to attract attention from the wider hub firm (e.g. headquarters) and (3) reverting to brokerage to pursue synergistic network expansion opportunities from the wider interfirm ecosystem.

The exploratory ideas in this paper can help advance both entrepreneurship and information systems research.

This paper offers preliminary ideas on egocentric network dynamics associated with a new venture partnering with a large ecosystem hub firm. Such a perspective is appropriate since achieving value creation through active partnering requires building and strengthening ties over time across the hub firm's ecosystem.