Networks, Information & Brokerage: The Diversity-Bandwidth Tradeoff

Abstract:     
The authors propose that a tradeoff between network diversity and communication channel band-width regulates the degree to which structurally diverse networks deliver non-redundant informa-tion to actors in brokerage positions. As the structural diversity of a network increases, the band-width of the communication channels in that network decrease, creating countervailing effects on the receipt of novel information. This argument is based on the observation that diverse networks are typically made up of weaker ties, characterized by narrower communication channels across which less diverse information is likely to flow. The diversity-bandwidth tradeoff is moderated by (a) the degree to which topics are uniformly or heterogeneously distributed over the alters in a broker’s network, (b) the dimensionality of the information in a broker’s network (whether the to-tal number of topics communicated by alters is large or small) and (c) the rate at which the infor-mation possessed by a broker’s contacts refreshes or changes over time. The authors test these ar-guments by combining social network and performance data with direct observation of the infor-mation content flowing through email communication at a medium sized executive recruiting firm. These analyses unpack the mechanisms that enable information advantages in networks and serve as a ‘proof-of-concept’ for using email content data to analyze relationships among infor-mation flows, networks and social capital.

Note: Previously titled "Network Structure & Information Advantage"

Keywords: Social Networks, Social Capital, Information Content, Information Diversity, Network Size, Network Diversity, EMail Networks, Performance, Productivity, Information Work.

JEL Classifications: D24, D83, J24, M12, M54

Working Paper Series