The document discusses the importance of networks for knowledge sharing and innovation in today's rapidly growing knowledge environment. It provides examples of different types of networks, including individual networks, networks between firms, and networks of organizations. It highlights that an individual's position in a social network influences their opportunities and constraints. It suggests that networks can be strategically developed by changing where people sit, who they interact with, and the communities and networks they belong to. Developing participation in a variety of strong and weak tie networks both inside and outside an organization is recommended.

1. Leveraging Networks for Tangible Results Dr. Robin Teigland Stockholm School of Economics [email_address] www.knowledgenetworking.org

2. Everyone is talking about networks National Innovation Networks Formal Networks Entrepreneurial Networks Ego Networks Regional Networks Infrastructure Networks Social Networks FAS.research Electronic Networks Informal Networks Networks of Practice Networked organization

3. A world of rapidly growing knowledge …. Growth Time Information and knowledge Human absorptive capacity Cohen & Levinthal 1989

4. A world of rapidly growing knowledge …. > One week in 2007 A person’s lifetime in 18th century

5. A world of rapidly growing knowledge …. 50% knowledge relevant 50% knowledge outdated First year of technical-based education Third year of education

6. ....that is increasingly connected new friends family local colleagues old friends old colleagues colleagues at other offices Just a click away… virtual communities local networks old classmates

7. ” No one knows everything, everyone knows something, all knowledge resides in humanity.” networks. Lévy 1997

8. What is a network? A set of actors connected by ties Ties/Links Knowledge, trust, team, sit by, dislike, etc. Alliance, customer, investment, etc. Tie Actors/Nodes Individuals Teams, organizations, etc. Actor

9. Swedish hip hop artists Liljeros 2006 ?? Timbuktu

10. Individuals within a firm Mattsson 2004 < 1 yr 1-5 yrs 5-10 yrs 10-15 yrs > 15 yrs Time at firm

11. Individuals between business firms SEB Ray-Adams & Sandberg 2000 Interlocking directorates of Sweden’s 110 largest public firms, 2000 ??

12. Networks of firms Dahlin 2007 Nocom Ericsson Telia Nokia TietoEnator

13. Groups of organizations (Sectors) Teigland et al. 2004 Social interaction in Uppsala Biotech Cluster Government Inter-sector organizations Academia Biotech firms Servicefirms Financial Institutions

14. Uncovering networks in an organization Teigland et al. 2005 Formal organization Informal organization

15. Central connectors within one location Bottleneck  Teigland 1998 Surprise!! Stockholm

16. Boundary spanners between locations Stockholm London Brussels Helsinki Madrid Copenhagen Transferred from Stockholm Teigland 1998 San Francisco

17. Trust & reciprocity are essential for knowledge exchange in networks

18. Peripheral players between organizations San Francisco Stockholm London Brussels Helsinki Madrid Copenhagen Teigland 1998 Other firms Electronic communities

19. Dual loyalties Loyalty Loyalty Organization Professional network

20. Increasing job turnover Time Number of jobs in lifetime Estimated time at one organization in Silicon Valley: ~18 months

21. What about performance? Firm A High creative Low on-time High on-time Low creative Teigland 2003 High creative Virtual community Firm B

22. The strength of weak ties Network A’s knowledge Network D’s knowledge Network B’s knowledge Network C’s knowledge Granovetter 1973

23. Two divisions within Sundlink (Öresund Bridge) Section 1 Section 2 Improved efficiency over time Stagnant performance over time Schenkel & Teigland 2007

24. Comparing across firms Teigland et al 2000

25. Hewlett-Packard (1990s) Networking activities recognized and rewarded at individual and unit levels Management support for informal and formal networking activities across internal and external boundaries Extensive socialization : personnel rotation, cross-office teams A visionary organization Clearly defined mission: ”To make technical contributions for the advancement and welfare of humanity” Supporting core values, e.g., teamwork Company-wide goal of World’s Best Laboratory

26. Other network outcomes? Individual level Improved effectiveness Improved job opportunities Higher salaries Faster promotions Increased influence & power Improved health Organizational level Organizational learning Improved innovation Increased sales Decreased employee turnover Painting by Idahlia Stanley

27. Myths about networks I already know what is going on in my network We can’t do much to help informal networks To build networks, you have to communicate more Adapted from Cross et al. 2002

28. More social get-togethers and coffee breaks are not the solution

29. “Managing” networks in your organization Before After Anklam & Welch 2005 1. Uncover networks 2. Analyze networks 3. Improve connectedness

30. When you hire someone,… … ..you “hire” his or her network.

31. Encourage an open innovation attitude Not all the smart people work for us. We need to work with smart people inside and outside the company. The smart people in our field work for us. If you create the most and the best ideas in the industry, you will win. If you make the best use of internal and external ideas, you will win. Closed attitude Open attitude Chesborough 2003

32. So, what does this mean for you? An actor’s position in a social network, i.e., social capital, determines in part the actor’s opportunities and constraints Casper & Murray 2002 German biotech scientists

33. What can you do? Where do you sit? With whom do you eat lunch? With whom do you socialize? To which communities, networks do you belong? Think strategically… How are decisions made in your organization? What information flows would you like to be in? What resources will you need in the future?

34. Develop participation in a variety of networks Strong ties Weak ties Outside organization Inside organization SOCNET

35. Start your own network Swedish International Business School Alumni Network (SIBSAN) Stanford GSB Alumni Club Nobel Laureates Government Ministers Stanford

36. But……. “ Lika barn leka bäst” People find similar people attractive and develop relations with people like themselves Our networks tend to be homogeneous and not heterogeneous Marsden 1987, Burt 1990

37. Go meet someone different

38. Make yourself easy to find - Create a live CV Blog blogger, livejournal, typepad, wordpress, etc. Social software LinkedIn Shortcut ecademy Media Slideshare.net Flickr.com YouTube.com

39. Myths and reality checks I already know what is going on in my network Those who think they know their network the best are usually the ones who know the least We can’t do much to help informal networks Informal networks can be “managed” through changing the organizational context To build networks, you have to communicate more Networks can be strategically developed Adapted from Cross et al. 2002

40. The positive spiral of social networks tschaut’s photos Contribution Reciprocity Accumulation Value

41. References and acknowledgements Books Barabási, Linked: The New Science of Networks . Perseus, 2002 Castells, The Rise of the Network Society . Blackwell, 2000 Cross & Parker, The Hidden Power of Social Networks . Harvard Business School, 2004 Gladwell, The Tipping Point . Abacus, 2001 Scott, Social Network Analysis . Sage, 2000 Teigland, Knowledge Networking , SSE, 2003 Teten & Allen, The Virtual Handshake . Creative Commons, 2007 Homepages Stephen Bird, people.bu.edu/sbird Steve Borgatti, www.socialnetworkanalysis.com Rob Cross, www.robcross.org International Network for Social Network Analysis http://www.insna.org/ David Krackhardt, www.andrew.cmu.edu/user/krack/index.shtml Valdis Krebs, www.orgnet.com Fredrik Liljeros, www.sociology.su.se/home/Liljeros/index.html James Moody, www.soc.duke.edu/~jmoody77/presentations/index.htm Giancarlo Oriani, www.informalorg.eu (In Italian) Barry Wellman, www.chass.utoronto.ca/~wellman/

42. Go network! Thanks!!!