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Social Origins of Great Strategies

Author

Listed:
  • Ronald S. Burt

    (Booth School of Business, University of Chicago, Chicago, Illinois 60637)

  • Giuseppe Soda

    (Department of Management and Technology, Bocconi University, 20136 Milan, Italy)

Abstract

We use network theory to define the social origins of great strategies. Our argument proceeds in four steps: (1) The bridge and cluster structure of social networks is a proxy indicator of variation in knowledge and practice (homogeneity within clusters, heterogeneity between); (2) people with strong connections to multiple clusters (network brokers) have breadth, timing, and arbitrage advantages in moving knowledge/practice from clusters where it is a commodity into clusters where it is valuable. (3) New strategy is a new perspective on, or new combination of, prior knowledge/practice; so (4) network brokers have a competitive advantage in detecting and developing new strategies, a subset of which are great strategies.

Suggested Citation

  • Ronald S. Burt & Giuseppe Soda, 2017. "Social Origins of Great Strategies," Strategy Science, INFORMS, vol. 2(4), pages 226-233, December.
    • Handle: RePEc:inm:orstsc:v:2:y:2017:i:4:p:226-233
    DOI: 10.1287/stsc.2017.0043
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    References listed on IDEAS

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    1. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    2. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    3. Donna Marie De Carolis & Barrie E. Litzky & Kimberly A. Eddleston, 2009. "Why Networks Enhance the Progress of New Venture Creation: The Influence of Social Capital and Cognition," Entrepreneurship Theory and Practice, , vol. 33(2), pages 527-545, March.
    4. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    5. Giovanni Gavetti & Anoop Menon, 2016. "Evolution Cum Agency: Toward a Model of Strategic Foresight," Strategy Science, INFORMS, vol. 1(3), pages 207-233, September.
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    Cited by:

    1. Ronald S. Burt, 2019. "Network Disadvantaged Entrepreneurs: Density, Hierarchy, and Success in China and the West," Entrepreneurship Theory and Practice, , vol. 43(1), pages 19-50, January.
    2. Giovanni Gavetti & Joe Porac, 2018. "On the Origin of Great Strategies," Strategy Science, INFORMS, vol. 3(1), pages 352-365, March.
    3. Soda, Giuseppe & Zaheer, Akbar & Sun, Xiaoming & Cui, Wentian, 2021. "Brokerage evolution in innovation contexts: Formal structure, network neighborhoods and knowledge," Research Policy, Elsevier, vol. 50(10).
    4. Mukhtar, Arshia & Zhu, Ying & Lee, You-il & Bambacas, Mary & Cavusgil, S. Tamer, 2022. "Challenges confronting the ‘One Belt One Road’ initiative: Social networks and cross-cultural adjustment in CPEC projects," International Business Review, Elsevier, vol. 31(1).
    5. Chris C. Gernreich & Sebastian Knop, 2019. "Empowering Creative Employees: Phase-Specific Support In The Front-End Of Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(08), pages 1-31, December.
    6. Sonja Opper, 2023. "Social network and institution-based strategy research," Asia Pacific Journal of Management, Springer, vol. 40(1), pages 329-351, March.

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