THE SOCIAL CAPITAL QUESTIONNAIRE THE SOCIAL CAPITAL QUESTIONNAIRE An on-line tool to collect, analyze, and An on-line tool to collect, analyze, and generate reports on individual and generate reports on individual and organizational networks to support teaching organizational networks to support teaching and research on social networks and research on social networks Prof. Martin Gargiulo INSEAD Asia Campus
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THE SOCIAL CAPITAL QUESTIONNAIRETHE SOCIAL CAPITAL QUESTIONNAIRE
An on-line tool to collect, analyze, and generate reports An on-line tool to collect, analyze, and generate reports on individual and organizational networks to support on individual and organizational networks to support teaching and research on social networksteaching and research on social networks
Prof. Martin GargiuloINSEAD Asia Campus
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Part IPart IIntroducing the Social Capital Questionnaire: Introducing the Social Capital Questionnaire: An easy way to gather and analyze data on individual An easy way to gather and analyze data on individual
networks to teach MBAs and executives networks to teach MBAs and executives
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Full networks and ego-centered networksFull networks and ego-centered networks
Full Network Ego-Centered Network
Respondent’s Action Full
Network Ego
Network
Identifies contacts using various “name generating questions” Yes Yes
Provides background information on each contact (sex, age, etc). No Yes
Describes the relationship with each contact (frequency, closeness etc.) Yes Yes
Describes the relationship between each pair of contacts (closeness) No Yes
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The SCQ home pageThe SCQ home page https://executive-tools.insead.edu/socialcapital/https://executive-tools.insead.edu/socialcapital/
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What can you do? What can you do? The functionality of the SCQThe functionality of the SCQ
Choose your questionnaire and report templates• Preview a standard questionnaire and report template• Edit an existing or create a new questionnaire• Edit an existing or create a new report template
Administer your network survey• Creating an editing a survey• Adding, moving, and deleting participants• Monitor response • Communicate with participants (logins, reminders, etc.)
Analyze the data and generate reports• Compute network statistics for each participant and for the group• Generating online individual reports comparing individual and group statistics• Download group data and individual reports if needed• Comparing group statistics with a reference group
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Choosing your templates:Choosing your templates:The standard ego-centric questionnaireThe standard ego-centric questionnaire
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Choosing your templates:Choosing your templates:Standard or customized report templatesStandard or customized report templates
Social Capital Personal Report COUPERIN, François
same firm (but in a different function), and in other firms. The first three categories measure the extent to which your network reach across units and functions in your firm, whereas the last two indicate the extent to which your network is limited to your own firm. The next chart, Functional Diversity, complements this picture by looking specifically at the type of functional area your contact works for.
Organizational and functional diversity are important for at least two reasons. The first reason is similar to cultural diversity. A network with contacts from different functional backgrounds exposes you to a richer picture of the business and allows you to learn about more opportunities to add value to your firm and to your career. Second, in the global structures adopted by large companies, functions (or divisions) may become "silos" isolated from one another. Business, however, often requires active coordination across these silos. Networks that cut across functions can help you add value in a critical area for your firm, because they provide alternative and faster ways to achieve the necessary cross-functional coordination to get projects going.
The next chart looks at the hierarchical diversity of your network. How diverse is your network in terms of rank
is partly dependent on your own rank. The lower you are in the organization, the more likely your network is upwards oriented. These are the people you most often need to mobilize to get things done.
Your network, however, can help you understand how different hierarchical levels view the organization, besides to give you access to the information and resources they control. A rank-homogeneous network may cut you off from such diverse views, leading you to have a rather biased view of what is going on in your firm. This is particularly dangerous if you are a senior manager: it is all too easy to have a distorted picture of what's going on at the bottom! If your network is too upward, peer, or (less likely) downward oriented, and your diversity index is significantly below that of your reference group, it may be time for some reflection.
The final chart looks at the origin of your relationships. We typically make contacts in organized settings or through common third parties. If most of our contacts come from one single source, however, it is more likely that they will be similar in other aspects too. The chart prompts you to reflect on the extent to which you rely on too few settings to make contacts. If this is your case, it may be a call to expand your circles.
The Personal Report compares individual network statistics with those of a reference group
This reference group can be the participant’s group (i.e., the people in the class) or a larger group (i.e., all people who have taken this class)
Participants can generate personalized reports in which they define their own reference group among 15,000+ individual networks worldwide
Participants can also modify their networks and see the results of the changes on a number of indexes.
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Administering a network survey: Administering a network survey: Creating and editing a groupCreating and editing a group
Welcome Message can be edited to suit your needs
Deadline and Reminder dates can be changed to accommodate extensions
Make reports available online
You need to be a registered administrator or have an administrator access code to create and administer groups
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Administering a network survey: Administering a network survey: Adding, moving and deleting participantsAdding, moving and deleting participants
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Analysis and reporting:Analysis and reporting:Compute network indexes and generate reportsCompute network indexes and generate reports
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Downloading data:Downloading data:Report files and group dataReport files and group data
You can also download Group Statistics to compare your class with a reference group
Group statistics can be compared with similar figures for a comparison group (e.g., prior participants from the same MBA class or executive program) to illustrate differences in social networks
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Take your own tour of the SCQTake your own tour of the SCQ
Part IIPart IITeaching Social Networks using the SCQ:Teaching Social Networks using the SCQ:Leveraging the Social Capital Reports and Group Leveraging the Social Capital Reports and Group
Statistics to structure your classStatistics to structure your class
Motivating the session on social networks (5-10 min)Using metaphors to illustrate how networks create social capital (15-20 min)Understanding how much you depend on your contacts for help (5-10 min)Providing research evidence on the effects of networks on outcomes (5-10 min)Given students a chance to reflect on their individual reports and devise
strategies to enhance their networks (30-45 min, individual and in trios)Wrapping up the session (5-10 min)
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Motivating the session: Motivating the session: The PARC experienceThe PARC experience
Xerox was unable to capitalize on the innovations developed by PARC, which were initially commercialized by other firms.. The most visible example was the GUI, adopted by Apple in his path-breaking Macintosh computer in 1984
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Motivating the sessionMotivating the session: : Formal and informal organization structuresFormal and informal organization structures
• Firms are made of clusters of people with similar human capital (knowledge, expertise, skills). • The return on this human capital depends on the connections within and between those clusters
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Americas
Asia-PacificEMEASwitzerlandUK
Links represent collaboration between MDs of a global investment bank
Connections more likely within than across geographies
A few people bridge across dense clusters
Motivating the sessionMotivating the session: : Connections do not happen at randomConnections do not happen at random
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Using metaphors to illustrate Using metaphors to illustrate how networks create social capitalhow networks create social capital
Metaphor # 2Networks as electrical wires
NETWORKDEPTH
Metaphor # 1Networks as windows or blinders
NETWORKBREADTH
Metaphor # 3Networks as bridges or islands
NETWORK STRUCTURE
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55.00
63.29
86.1790.60
92.94
19.23
59.51
89.49
0
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100
Nationality Gender Workplace Rank Function Team member
Direct report
Origin
Div
ersi
ty In
dex
Average Minimum Maximum
Using metaphors: Using metaphors: Networks as windows or blindersNetworks as windows or blinders
Constraint or Choice?Lack of diversity can result from lack of opportunities to meet diverse people or from choice: people do not venture out of their comfort zone
Diverse networks can be windows to the world; homogeneous networks can be blinders that prevent us from seeing and understanding the world
Does network diversity matter?
Lines represent maximum, average, and minimum diversity by contacts’ category (nationality, rank, etc.)
People vary in the extent that they have diverse networks (gaps between lines)
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0.270.25
0.08
0.03
-0.15
Frequency of contact
Duration Common friends
Similarity Authority relation
Effec
t on
Rela
tion
ship
Dep
th
Characteristics of the Relationship
Using metaphors:Using metaphors:Networks as electrical wiresNetworks as electrical wires
Sample of 31,114 relationships reported by 2,573 managers worldwide Bars represent the relative impact of each aspect on the depth of the relationship
between the manager and his/her contact
• Strong ties (“thick wires”) take time and frequent interaction to emerge
• Strong ties are more likely between similar people (same sex, same nationality) and less likely in the presence of authority
• But strong ties are also more expensive and difficult to handle because they increase demands for reciprocity
• Strong ties are not always the most appropriate to handle a relationship
Where do strong relationships come from?
Is it better to have a network with only strong ties?
Positive impact
Negative impact
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Using metaphors:Using metaphors:Networks as islands or bridgesNetworks as islands or bridges
SparseContacts arenot connectedto each other
CentralizedEverybody is connected to one central contact
DenseContacts areconnectedto each other
Which type of network structure is better?
YOU
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Using metaphors:Using metaphors:Are you in an island or are you a bridge?Are you in an island or are you a bridge?
The horizontal axis is the proportion of ties among contacts (varies from 0 to 100)
The vertical axis is the Network Centralization Index (varies from 0 to 100)
Dividing lines (in white) indicate the average for each axis
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Network resources:Network resources:What benefits do you get from your contacts?What benefits do you get from your contacts?
Contact Daily Job Support Influential Access Emotional Support Political Support Information And Ideas Difficult to Replace Dependence
Daily job support: the contact is someone you turn to for help with your daily job, to meet a tight schedule or to get a handle on a technical problem
Influential access: your contact helps you get access to influential people whom you would not reach without this contact's mediation
Emotional support: the contact provides you with valuable feedback and emotional support to help you cope with stressful situations at work
Political support: the contact supports your initiatives by granting you the resources, permission, or legitimacy necessary to move forward
Information and ideas: the contact is a source of information and ideas that help you solve problems or identify new opportunities
This chart in your Personal Report displays..• The benefits you get from each of your contacts (the blue circles)
• The difficult to replace this person (the red circles)
The more benefits a contact provide, and the more difficult to replace, the more you depend on this contact, and the more critical is this relationship for you (100: Maximum)
The Benefit Concentration Index (BCI) is high when you obtain the benefit (e.g., emotional support) for few people – your “supply” is highly dependent on these people
The RG index (Reference Group) compares your BCI with all previous AEIP participants
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Network resources:Network resources:How dependent are you on a single contact?How dependent are you on a single contact?
12.17
17.5713.20
16.7112.29
10.230
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20
30
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70
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90
100
Task support Influence Emotional support
Political Support
Information Replacement
Ben
efit
Co
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ntr
atio
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Average Minimum Maximum
Benefit Concentration Index ranges from 0 to 100
• The higher your score, the more you depend on one or a few contacts to obtain the specific network benefit
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Evidence on network effects: Evidence on network effects: Do networks affect individual performance?Do networks affect individual performance?
Level of Social Capital
Pe
rfo
rma
nc
e
SourceM. Gargiulo, G. Ertug & C. Galunic, “The two faces of control. Network closure and individual performance among knowledge workers”. Administrative Science Quarterly (2009)
Social capital mattersHolding human capital constant, a 10 % increase in social capital of MDs results in a 4.8 % increase in performance
Managing Directors
Executive Directors
Directors
Associates
Social capital matters• Lines represent how investment bankers’
performance varies as social capital increases, net of the effects of human capital
• The effect of social capital on performance becomes more apparent as bankers have more client and managerial responsibilities—that is, as their job becomes more complex
Who is in the network also matterA 10% increase in the quality of the people in the network results on average on a 2.8% increase in performance
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Evidence on network effects:Evidence on network effects:Who are the innovators?Who are the innovators?
673 supply chain managers were asked for ideas to improve the supply-chain in Raytheon, a large electronics and defense company
Ideas were blind-judged by two independent senior managers
Managers with contacts in different groups significantly more likely to …
• Have ideas on how to improve the supply chain management
• Have their ideas recognized as valuable
• Discuss their ideas with colleagues
This finding has been replicated in a number of fields, from music to philosophy, from science to industry: innovations come disproportionally from people bridging separate groups
SourceR.S. Burt, Structural Holes and Good Ideas. American Journal of Sociology, 110 (September 2004): 349–99
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Evidence on network effects: Evidence on network effects: Which network structure fosters innovation?Which network structure fosters innovation?
A study of the network of the creative artists who made Broadway musicals from 1945 to 1989
Creative artists (excluding actors) are directly linked to each other when they collaborate on the same show and indirectly through having collaborated with common third parties in different shows
Measures of financial success (tickets sold) and artistic success (average critics’ reviews)
The financial and artistic success of Broadway productions increases as the artist networks resemble the “island and bridges” structure. The same holds true for Broadway seasons
Extreme network structures do not work: both disconnected islands with very few bridges or too many bridges with few islands damages both artistic and financial success
SourceB. Uzzi & J. Spiro, Collaboration and Creativity: The Small World Problem. American Journal of Sociology, 111 (September 2005): 447–504
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Can something be done?Can something be done?Debunking myths about networkingDebunking myths about networking
“Skilled networkers are born; they cannot be trained”
“The social capital people build is a reflection of their personality”
“Networks occur naturally. There is little that management can do to affect how networks emerge and evolve”
FALSE
FALSE
FALSE
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Can something be done?Can something be done?Evidence on the effect of social capital training Evidence on the effect of social capital training on performanceon performance
Executives that received training in social capital were …
• 35 % more likely to be evaluated as “exceeding expectations”
• 43% more likely to be promoted …
than peers in a matched control group
SourceR. Burt and D. Ronchi, “Teaching executives to see social capital: results from a field experiment," Social Science Research (2007).
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Taking stock:Taking stock:A self-guided assessment of your social capitalA self-guided assessment of your social capital
Personal reflection• Take some time to go over your report and try to fill out the worksheet
Assessing the Social Capital of Your Network
With other participants• Get together with two other participants to discuss strategies on how to
enhance the social capital of your professional network
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Closing message:Closing message:You always “manage” your network – You always “manage” your network – even if you don’t notice iteven if you don’t notice it
Even if we are not aware of it, we are constantly shaping our network. When we answer a request from a colleague, reject an invitation to a professional meeting, or stay in touch with an old friend, we are implicitly making networking decisions. But actively managing our professional network is not easy. We may even find it awkward. Left alone, however, most networks would become too homogeneous, too dense, or render people too dependent on a few contacts. Instead of benefiting from its social capital, we may become trapped in our own net. Leaders need to manage the social capital of their networks, because this capital is one of the foundations of successful leadership.
Percentage in first category of contacts (out of four)
Div
ers
ity
Ind
ex
How does the Network Diversity Index works?How does the Network Diversity Index works?
The Network Diversity Index (NDI) decreases with the proportion of contacts in each category and with the strength of your relationship with these contacts.
The index is 0 if you are strongly tied to one type of contact and approaches 100 as you are equally tied to people from many different backgrounds
The graph shows the NDI for a network with four possible categories of contacts as a function of the proportion of contacts in the first category
A little diversity goes a long way. Even if you have 50% of contacts in one category, your NDI will be above 90 if you do have people in the other three categories.
The NDI drops rapidly once you have more than 70% of your contacts in one category.
For the mathematically curious:NDIi = 1 - k (pkpij,k)2 pk: the proportion of alters in the kth category
(k pk = 1) Pij,k: the mean proportional relationship strength