Economic Networks

Social relations are crucial for understanding diverse economic actions and a network perspective is central to that explanation. Simple exchanges involving money, labor, and commodities combine into complexly connected systems. Economic networks span many levels of analysis, from persons (consumers, employees), to groups (households, workteams), organizations (corporations, interest groups), populations (industries, markets) and the rapidly expanding global economic system. David Knoke blends network theories from a range of disciplines and empirical studies of domestic and international economies to illuminate how economic activity is embedded in and constrained by social ties among economic actors. Social capital, in the form of connections to others holding valuable resources, is vital for finding a job, buying a car, creating a new industry, or triggering a global financial crisis. In nontechnical terms the author explicates the core network concepts, measures, and analysis methods behind these phenomena. The book also includes many striking network diagrams to provide visual insights into complex structural patterns. This accessible book offers an invaluable critique for both undergraduate and graduate students in economic sociology and social network analysis courses who seek a better understanding of the multifaceted economic webs in which we are all entangled.

Social relations are crucial for understanding diverse economic actions and a network perspective is central to that explanation. Simple exchanges involving money, labor, and commodities combine into complexly connected systems. Economic networks span many levels of analysis, from persons (consumers, employees), to groups (households, workteams), organizations (corporations, interest groups), populations (industries, markets) and the rapidly expanding global economic system.David Knoke blends network theories from a range of disciplines and empirical studies of domestic and international economies to illuminate how economic activity is embedded in and constrained by social ties among economic actors. Social capital, in the form of connections to others holding valuable resources, is vital for finding a job, buying a car, creating a new industry, or triggering a global financial crisis. In nontechnical terms the author explicates the core network concepts, measures, and analysis methods behind these phenomena. The book also includes many striking network diagrams to provide visual insights into complex structural patterns.This accessible book offers an invaluable critique for both undergraduate and graduate students in economic sociology and social network analysis courses who seek a better understanding of the multifaceted economic webs in which we are all entangled.

List of Figures ixPreface xi1 Economics and Social Networks 1Mainstream and Alternative Economic Theories 3The Economic Sociology Perspective 13The Social Network Perspective 21Summary and Outline of the Book 242 Markets and Networks 25Labor Markets 28Consumer Markets 41Producer Markets 56Summary 643 Networks inside Organizations 66Micro-Network Concepts 69Social Capital 75Forming Employee Networks 81Network Outcomes 90Team Networking 105Summary 1104 Networks among Organizations 111Business Startup Networks 112Business Groups 118Interlocking Directorates 128Strategic Alliances 131Evolution of Interorganizational Networks 146Summary 1555 Global Networks 157International Networks 158Supply and Commodity Chains 163World Cities Networks 165A Transnational Capitalist Class? 171Networks of the Global Financial Crisis 177Summary 1866 Looking Forward 187Theory Construction 188Empirical Tools 191Connecting Economy and Polity 193Appendix: Network Resources 197References 200Index 232