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Information about life-and-death matters such as ways to attain good health or prevent disease is often diffused through informal social networks. Network-based strategies and competencies are probably even more important in poor societies with limited means of communication and less effective formal structures than in developed economies. In this chapter, the authors explore the nature of and impacts of informal social networks in reducing fertility and HIV infection in Kenya and Malawi, using longitudinal quantitative and qualitative data that they and their collaborators have been collecting and analyzing for more than a decade. They find that social networks and informal interactions are relevant for many different health domains in developing countries. Their research shows that network effects may be nonlinear, that there may be multiple equilibria, and that networks may either reinforce the status quo or help diffuse new options and behaviors. They show that both the context (e.g., the degree of market development) and the density of networks matter (possibly interactively), as well as the endogeneity of network partners. Their work demonstrates that multiple approaches, including both qualitative and quantitative analyses, can be informative in providing greater understanding of what networks do and how they function.
Author : Paul R. Kleindorfer Publisher : Prentice Hall Professional Page : 589 pages File Size : 27,84 MB Release : 2009-06-11 Category : Business & Economics ISBN : 0137029322
New Paperback Edition Networks and the Enterprise: Breakthrough Thinking and Actionable Strategies “This book presents an amazing collection of insights on underlying forces and ways to thrive in our post-Coaseian age—an age in which the centralized firm is changing into an agile and resilient network of participants. A must read for a world where unpredictability reigns supreme.” —John Seely Brown, Independent Co-Chair of the Deloitte Center for Edge Innovation, and Senior Fellow at the Annenberg Center for Communication at the University of Southern California “I couldn’t wait to get my hands on this research...I have already begun to put the ideas into practice in designing next-generation open innovation networks...the diversity of ideas and perspectives is truly amazing and will be a terrific resource to anyone seeking to move to new business models based on the power of networks for innovation, marketing, and creating and leveraging big ideas. Job well done!” —Larry Huston, Creator of the “Connect and Develop” program for Procter & Gamble, and Managing Director of 4iNNO, a major Open Innovation consulting practice “In our borderless world, every manager needs to understand the strategic implications of networks. For the first time, The Network Challenge brings together thought leaders from many fields—a team of experts as broad as the network challenge itself.” —Kenichi Ohmae, author of more than 100 books, including the seminal work, The Mind of the Strategist, advisor on global strategy to foreign governments and scores of multinational corporations, selected by The Economist as one of five management gurus in the world. Networks define modern business. Networks introduce new risks (as seen by the rapid spread of contagion in global financial markets) and opportunities (as seen in the rapid rise of network-based businesses). While managers typically view business through the lens of a single firm, this book challenges readers to take a broader view of their enterprises and opportunities. This book’s 28 original essays include CK Prahalad on networks as the new locus of competitive advantage Russell E. Palmer on leadership in a networked global environment Dawn Iacobucci and James M. Salter II on the business implications of social networking Franklin Allen and Ana Babus on contagion in financial markets Steven O. Kimbrough on artificial intelligence, evolutionary computation, and networks Satish Nambisan and Mohan Sawhney on tapping the “global brain” for innovation Manuel E. Sosa on coordination networks in product development Christophe Van den Bulte and Stefan Wuyts on customer networks Christoph Zott and Raphael Amit on using business models to drive network-based strategies Yoram (Jerry) Wind, Victor Fung, and William Fung on network orchestration Valery Yakubovich and Ryan Burg on network-based HR strategy Howard Kunreuther on risk management strategies for an interdependent world Paul R. Kleindorfer and Ilias D. Visvikis on integrating financial and physical networks in global logistics Witold J. Henisz on network-based political and social risk management Boaz Ganor on terrorism networks And much more...
From oil companies seeking rights to drill to consumer products firms attempting to forestall a consumer boycott, organizations often seek to influence political or social policy to achieve their own objectives. But to exert this influence, they need to understand the structure of political and social networks. In this chapter, Witold Henisz examines how information about the structure of political and social networks can be integrated into data acquisition and analysis, as well as strategy implementation. Although sophisticated companies have long relied on an informal understanding of networks of informants to gather information about social and political actors at home and abroad, the analysis of the information and design of an influence strategy has too often occurred without reference to that structure. As Henisz points out, a more rigorous approach to analysis is transforming political and social risk management from art to quasi-formal science. This chapter outlines the past, present, and future frontiers of political and social risk management with particular attention to using an understanding of the network structure of diverse actors in perceiving, analyzing, and influencing the political and social environment.
Logistics is at the center of network-based manufacturing strategies, linking manufacturing sources with intermediate and final markets. As global logistics networks have grown and developed, they also have presented new challenges in managing risk and volatility across these broad, global networks. In this chapter, Kleindorfer and Visvikis discuss changes in logistics and financial instruments such as derivatives that have emerged to value and hedge the cost of capacity and services in these markets. They trace the recent history of maritime logistics and describe the convergence and integration of the physical and financial networks that underlie the valuation and use of logistics services. Global logistics illustrates how network-based strategies have integrated financial and physical networks. It also shows the emerging tools and competencies that have been needed to manage new risks arising from these broader networks.
Networks increase interdependencies, which creates challenges for managing risks. This is especially apparent in areas such as security and enterprise risk management, where the actions of a single player in an interconnected network can wreak havoc on everyone in the network. The network, in this case, is only as strong as its weakest link. There are related problems in encouraging investments for prevention and protection, because the expected payoffs from such measures by one player are affected by the actions of other players in the network. This chapter examines the challenges of interdependent security (IDS) and strategies for addressing these, including coordination with broader networks such as industry organizations and government.
Human knowledge and traditions can persist long after their relevance disappears, particularly in an environment of rapid change. Organizational routines often continue in force long after memory of their purpose has been lost. But memory is rarely lost entirely. It usually lingers, in distributed fragments, in an organization’s social networks and can, when needed, be reassembled. This chapter examines the role of such networks in the process of memory loss and recovery.
In an environment of rapid and discontinuous change, managers have turned to alliances to access the resources they need. But research on alliances shows that more than half fail, demonstrating the difficulty of managing these relationships. Based on their extensive research on alliances, the authors explore the relational capabilities needed for building and managing successful alliances. Using the case of Royal Philips, they explore the role of strategy, structure, systems, people, and culture in alliance success. They also discuss the need for ongoing adaptation and renewal of relational capabilities as the business and its environment change.
Artificial intelligence (AI) offers computational methodologies for modeling systems, which can be valuable in understanding networks. In this chapter, the author examines several types of applications of these methods in exploring how the behavior of individual agents leads to outcomes across networks. For example, he considers how one system, based on a Prisoner’s Dilemma that provides a higher payoff for players who don’t cooperate, can result in a surprising outcome in which cooperation dominates after many rounds of play. He also considers agent-based models--including turtles in a pond, showing discrimination effects; and sugar and spice trading, showing interactions through trading. Finally, he explores applications to ant colony optimization and swarming optimization of flocks of birds or schools of fish. He concludes that computational models offer important insights into networks, and the procedures used in modeling have a significant impact. The discussion also demonstrates that “networks matter,” affecting outcomes in sometimes unpredictable ways.
Telecommunications is a networked business, yet it traditionally has resisted a network-based view in its strategies and business models. In this chapter, Kevin Werbach explores this paradox, contrasting the worldview of Monists such as AT&T, who see the infrastructure as inseparable from the network, and Dualists such as Google, who see the network and its applications as distinct from the underlying infrastructure. Not surprisingly, AT&T is a proponent of “tiered access” whereas Google argues for “network neutrality.” Finally, Werbach examines how a more modular future might bridge the gap between those who seek to own and capitalize on the network and those who seek to expand it through more neutral offerings.
Although any manager would recognize the importance of “networking” in finding, developing, and retaining employees, human resource management traditionally has focused on individuals. In this chapter, the authors point out that core HR processes such as recruitment and hiring, training and development, performance management, and retention all depend on networks. They consider the importance of weak ties in matching employees with jobs and “structural holes” in promoting creativity. They urge managers to make the shift from an atomized view to a network view of human resources--from focusing on the “trees” to understanding the “forest.” They show that networks can boost efficiency and productivity by facilitating information sharing, attracting talent, and strengthening employees’ commitment to the firm. But networks may also pose risks such as “lift-outs,” in which a departing employee takes other workers in his or her network. The authors explore how managers need to understand the impact of networks and how to “manage” them.