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Homophily and Individual Performance

Author

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  • Gokhan Ertug

    (Lee Kong Chian School of Business, Singapore Management University, Singapore 178899)

  • Martin Gargiulo

    (INSEAD (Asia Campus), Singapore 138676)

  • Charles Galunic

    (INSEAD (Europe Campus), 77305 Fontainebleau, France)

  • Tengjian Zou

    (Lee Kong Chian School of Business, Singapore Management University, Singapore 178899)

Abstract

We study the relationship between choice homophily in instrumental relationships and individual performance in knowledge-intensive organizations. Although homophily should make it easier for people to get access to some colleagues, it may also lead to neglecting relationships with other colleagues, reducing the diversity of information people access through their network. Using data on instrumental ties between bonus-eligible employees in the equity sales and trading division of a global investment bank, we show that the relationship between an employee’s choice of similar colleagues and the employee’s performance is contingent on the position this employee occupies in the formal and informal hierarchy of the bank. More specifically, homophily is negatively associated with performance for bankers in the higher levels of the formal and informal hierarchy whereas the association is either positive or nonexistent for lower hierarchical levels.

Suggested Citation

  • Gokhan Ertug & Martin Gargiulo & Charles Galunic & Tengjian Zou, 2018. "Homophily and Individual Performance," Organization Science, INFORMS, vol. 29(5), pages 912-930, October.
    • Handle: RePEc:inm:ororsc:v:29:y:2018:i:5:p:912-930
    DOI: 10.1287/orsc.2018.1208
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    References listed on IDEAS

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