A Large-Scale Comparative Study of Informal Social Networks in Firms

Abstract

Theories of organizations are sympathetic to long-standing ideas from network science that organizational networks should be regarded as multiscale and capable of displaying emergent properties. However, the historical difficulty of collecting individual-level network data for many (N ≫ 1) organizations, each of which comprises many (n ≫ 1) individuals, has hobbled efforts to develop specific, theoretically motivated hypotheses connecting micro- (i.e., individual-level) network structure with macro-organizational properties. In this paper we seek to stimulate such efforts with an exploratory analysis of a unique data set of aggregated, anonymized email data from an enterprise email system that includes 1.8 billion messages sent by 1.4 million users from 65 publicly traded U.S. firms spanning a wide range of sizes and 7 industrial sectors. We uncover wide heterogeneity among firms with respect to all measured network characteristics, and we find robust network and organizational variation as a result of size. Interestingly, we find no clear associations between organizational network structure and firm age, industry, or performance; however, we do find that centralization increases with geographical dispersion—a result that is not explained by network size. Although preliminary, these results raise new questions for organizational theory as well as new issues for collecting, processing, and interpreting digital network data. This paper was accepted by David Simchi-Levi, Special Section of Management Science: 65th Anniversary.