Why Do Networks Exist?

13 Pages Posted: 13 May 2011

See all articles by Jesus Rodriguez-Pomeda

Jesus Rodriguez-Pomeda

Universidad Autonoma de Madrid - Department of Management

Fernando Casani

affiliation not provided to SSRN

Date Written: May 11, 2011

Abstract

Organizational change modifies the relationship between the organization and its environment. Using a methodology based on literature revision and analysis, we point out that the growing social importance of networks is related to the shrinking of hierarchy and to organizational knowledge creation. The network response to present challenges has certain virtues: flexibility, smaller costs, and its capacity to diminish the probability of error in decision making. Knowledge use could be characterized as a chain starting with the social capital that shapes the available resources for organizational knowledge. These resources are the networks and the know-how. Networks and know-how are the dynamic delimiters of knowledge creation. The chain closes at this point: knowledge usage is the seed of social capital. Networks are simultaneously social performance instruments and depots of social accumulated knowledge.

Keywords: networks, organizational knowledge, organizational change, knowledge creation

JEL Classification: M10, P11, Z13

Suggested Citation

Rodriguez-Pomeda, Jesus and Casani, Fernando, Why Do Networks Exist? (May 11, 2011). Available at SSRN: https://ssrn.com/abstract=1838468 or http://dx.doi.org/10.2139/ssrn.1838468

Jesus Rodriguez-Pomeda (Contact Author)

Universidad Autonoma de Madrid - Department of Management ( email )

Faculty of Economics and Business Administration
Francisco Tomas y Valiente, 5
Madrid, E-28049
Spain
+34.1.4974323 (Phone)

HOME PAGE: http://www.uam.es

Fernando Casani

affiliation not provided to SSRN ( email )

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