Do Connections Always Help? Network Brokerage’s Negative Impact on the Emergence of Status

Abstract This article explores the contingent role that social ties play in the emergence of status hierarchies. We argue that, while status is formed based on actors’ perception and understanding of social cues, network structure, and position influence this process by influencing the attention and legitimacy given to the focal actor in accordance with social cues that signal an actor’s identity. Using a large data set from an open-source software development community, we find that a broker linking diverse network members is less likely to receive status ratings from others and that the rating is more likely to be low when a broker receives a rating. Furthermore, we find evidence that the effects of brokerage are contingent upon certain factors that may affect the attention and legitimacy given to actors in the process of status evaluation, such as the actor’s prior status. An actor’s prior status was found to weaken the negative effect of brokerage. The importance of this study for theories of status, social networks, and attention is discussed.

[1]  P. Lazarsfeld,et al.  6. Katz, E. Personal Influence: The Part Played by People in the Flow of Mass Communications , 1956 .

[2]  M. W. Riley Personal Influence: The Part Played by People in the Flow of Mass Communications.Elihu Katz , Paul F. Lazarsfeld , 1956 .

[3]  H. Simon,et al.  Models Of Man : Social And Rational , 1957 .

[4]  P. Blau Exchange and Power in Social Life , 1964 .

[5]  M. Shubik,et al.  A Behavioral Theory of the Firm. , 1964 .

[6]  P. Berger,et al.  The Social Construction of Reality , 1966 .

[7]  P. Bonacich Factoring and weighting approaches to status scores and clique identification , 1972 .

[8]  L. Freeman Centrality in social networks conceptual clarification , 1978 .

[9]  J. Galaskiewicz Exchange Networks and Community Politics , 1979 .

[10]  Ronald S. Burt,et al.  Autonomy in a Social Topology , 1980, American Journal of Sociology.

[11]  B. Klein,et al.  The Role of Market Forces in Assuring Contractual Performance , 1981, Journal of Political Economy.

[12]  H. White,et al.  Where Do Markets Come From? , 1981, American Journal of Sociology.

[13]  Joseph Berger,et al.  Expectation States Theory: A Theoretical Research Program , 1981 .

[14]  Robert R. Faulkner,et al.  Music on Demand: Composers and Careers in the Hollywood Film Industry. , 1984 .

[15]  C. Shapiro Premiums for High Quality Products as Returns to Reputations , 1983 .

[16]  Robert B. Wilson,et al.  Game-theoretic models of bargaining: Reputations in games and markets , 1985 .

[17]  Paolo Leon The Economic Institutions of Capitalism , 1986, The Antitrust Bulletin.

[18]  W. Dugger The Economic Institutions of Capitalism , 1987 .

[19]  J. Coleman,et al.  Social Capital in the Creation of Human Capital , 1988, American Journal of Sociology.

[20]  Colin Camerer,et al.  Reputation and corporate strategy: A review of recent theory and applications , 1988 .

[21]  Chapel Hill,et al.  Intercorporate Relations: A structural approach to markets , 1988 .

[22]  Colin Camerer,et al.  EXPERIMENTAL TESTS OF A SEQUENTIAL EQUILIBRIUM REPUTATION MODEL , 1988 .

[23]  Roger V. Gould,et al.  Structures of Mediation: A Formal Approach to Brokerage in Transaction Networks , 1989 .

[24]  G. Davis Agents without Principles? The Spread of the Poison Pill through the Intercorporate Network , 1991 .

[25]  L. Ross,et al.  The Person and the Situation: Perspectives of Social Psychology , 1991 .

[26]  Mark S. Mizruchi,et al.  Intercorporate Relations: The Structural Analysis of Business , 1992 .

[27]  Marno Verbeek,et al.  Non-response in panel data: The impact on estimates of a life cycle consumption function. , 1992 .

[28]  Steven B. Andrews,et al.  Structural Holes: The Social Structure of Competition , 1995, The SAGE Encyclopedia of Research Design.

[29]  Organizations , 1992, Restoration & Management Notes.

[30]  Gerald R. Ferris,et al.  Social Context of Performance Evaluation Decisions , 1993 .

[31]  Joel Podolny A Status-Based Model of Market Competition , 1993, American Journal of Sociology.

[32]  Joel Podolny Market Uncertainty and the Social Character of Economic Exchange , 1994 .

[33]  Pamela R. Haunschild How Much Is That Company Worth?: Interorganizational Relationships, Uncertainty and Acquisition Premiums , 1994 .

[34]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[35]  H. Rao The Social Construction of Reputation: Certification Contests, Legitimation, and the Survival of Organizations in the American Automobile Industry: 1895–1912 , 1994 .

[36]  Gary Alan Fine,et al.  The Construction of Nonpersonhood and Demonization: Commemorating the Traitorous Reputation of Benedict Arnold , 1995 .

[37]  Damon J. Phillips,et al.  The Dynamics of Organizational Status , 1996 .

[38]  Gary B. Gorton Reputation Formation in Early Bank Note Markets , 1993, Journal of Political Economy.

[39]  Peggy A. Golden,et al.  THE EFFECT OF REPUTATION ON THE DECISION TO JOINT VENTURE , 1997 .

[40]  James N. Baron,et al.  Resources and Relationships: Social Networks and Mobility in the Workplace , 1997 .

[41]  W. Ocasio TOWARDS AN ATTENTION-BASED VIEW OF THE FIRM , 1997 .

[42]  B. Uzzi,et al.  Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness , 1997 .

[43]  Ekaterini Kyriazidou,et al.  Estimation of a Panel Data Sample Selection Model , 1997 .

[44]  R. Burt The contingent value of social capital. , 1997 .

[45]  G. Davis,et al.  Corporate Elite Networks and Governance Changes in the 1980s , 1997, American Journal of Sociology.

[46]  Herminia Ibarra,et al.  Paving an alternative route : Gender differences in managerial networks , 1997 .

[47]  Mary W. Sullivan How Brand Names Affect the Demand for Twin Automobiles , 1998 .

[48]  Joel Podolny,et al.  Status, Quality, and Social Order in the California Wine Industry , 1999 .

[49]  Ezra W. Zuckerman,et al.  The Categorical Imperative: Securities Analysts and the Illegitimacy Discount , 1999, American Journal of Sociology.

[50]  Morten T. Hansen,et al.  The Search-Transfer Problem: The Role of Weak Ties in Sharing Knowledge across Organization Subunits , 1999 .

[51]  Henrich R. Greve,et al.  The Effect of Core Change on Performance: Inertia and Regression toward the Mean , 1999 .

[52]  Michael X Cohen,et al.  Harnessing Complexity: Organizational Implications of a Scientific Frontier , 2000 .

[53]  Audris Mockus,et al.  A case study of open source software development: the Apache server , 2000, Proceedings of the 2000 International Conference on Software Engineering. ICSE 2000 the New Millennium.

[54]  R. Burt The Network Structure Of Social Capital , 2000 .

[55]  P. Salus The Cathedral and the Bazaar , 2000 .

[56]  Michael Hannan,et al.  Foundations of a Theory of Social Forms , 2000 .

[57]  I. Dinç,et al.  Bank Reputation, Bank Commitment, and the Effects of Competition in Credit Markets , 2000 .

[58]  Ezra W. Zuckerman,et al.  Focusing the Corporate Product: Securities Analysts and De-diversification , 2000 .

[59]  G. Ahuja Collaboration Networks, Structural Holes, and Innovation: A Longitudinal Study , 1998 .

[60]  N. Lin Social Capital: Frontmatter , 2001 .

[61]  Joel Podolny Networks as the Pipes and Prisms of the Market1 , 2001, American Journal of Sociology.

[62]  Mark S. Mizruchi,et al.  Getting deals done: The use of social networks in bank decision-making , 2001 .

[63]  Roger V. Gould The Origins of Status Hierarchies: A Formal Theory and Empirical Test1 , 2002, American Journal of Sociology.

[64]  P. Adler,et al.  Social Capital: Prospects for a New Concept , 2002 .

[65]  G. Fine,et al.  Resurrecting the Red: Pete Seeger and the Purificaton of Difficult Reputations , 2002 .

[66]  M. Jensen The Role of Network Resources in Market Entry: Commercial Banks' Entry into Investment Banking, 1991–1997 , 2003 .

[67]  Ezra W. Zuckerman,et al.  Robust Identities or Nonentities? Typecasting in the Feature‐Film Labor Market1 , 2003, American Journal of Sociology.

[68]  Ezra W. Zuckerman,et al.  The critical trade‐off: identity assignment and box‐office success in the feature film industry , 2003 .

[69]  Scott Shane,et al.  The Halo Effect and Technology Licensing: The Influence of Institutional Prestige on the Licensing of University Inventions , 2003, Manag. Sci..

[70]  H. Tajfel,et al.  The Social Identity Theory of Intergroup Behavior. , 2004 .

[71]  Hayagreeva Rao,et al.  Sources of Durability and Change in Market Classifications: A Study of the Reconstitution of Product Categories in the American Mutual Fund Industry, 1944-1985 , 2004 .

[72]  James N. Baron Employing identities in organizational ecology , 2004 .

[73]  Xueguang Zhou The Institutional Logic of Occupational Prestige Ranking: Reconceptualization and Reanalyses1 , 2005, American Journal of Sociology.

[74]  Greta Hsu,et al.  Identities, Genres, and Organizational Forms , 2005 .

[75]  Daniel Stewart Social Status in an Open-Source Community , 2005 .

[76]  E. Zajac,et al.  Status Evolution and Competition: Theory and Evidence , 2005 .

[77]  Joel Podolny Status Signals: A Sociological Study of Market Competition , 2005 .

[78]  Kathleen M. Sutcliffe,et al.  Mindfulness and the Quality of Organizational Attention , 2006, Organ. Sci..

[79]  J. McGee The Blackwell handbook of strategic management , 2006 .

[80]  Greta Hsu Jacks of All Trades and Masters of None: Audiences' Reactions to Spanning Genres in Feature Film Production , 2006 .

[81]  Glenn R. Carroll,et al.  Logics of Organization Theory: Audiences, Codes, and Ecologies , 2007 .

[82]  Daniel Stewart,et al.  Divergence in Status Evaluation: Theoretical Implications for a Social Construction View of Status Building In Status, Organization and Management , 2007 .

[83]  J. Ivery,et al.  Organizational Ecology , 2007 .

[84]  Beth A. Bechky,et al.  The Emergence of Governance in an Open Source Community , 2007 .

[85]  B. N. Sullivan,et al.  Help or Hindrance? The Impact of Identity Focus on Network Dynamics in the Hong Kong Film Industry, 1981-1997 , 2009 .

[86]  Conrado Manuel,et al.  A Social Capital Index , 2011 .

[87]  Soong Moon Kang,et al.  The Organizational Selection of Status Characteristics: Status Evaluations in an Open Source Community , 2012, Organ. Sci..

[88]  Jens Woelke,et al.  Personal Influence. The Part Played by the People in the Flow of Mass Communication , 2016 .

[89]  Terence R. Mitchell,et al.  The Effects of Social, Task, and Situational Factors on Motivation, Performance, and Appraisal , 2017 .

[90]  C. Fombrun Corporate Reputations as Economic Assets , 2017 .

[91]  Malte Doehne,et al.  Krackhardt (1999): The Ties That Torture: Simmelian Tie Analysis in Organizations , 2018, Schlüsselwerke der Netzwerkforschung.