The Dark Side of Structural Holes

Abstract

While previous research has investigated structural hole positions through single-level models, describing their positive effects, this article elaborates a multilevel model and supports an antithetical position, revealing a dark side of structural holes. Although individual-level structural holes are supposed to exercise positive effects, it is theorized that group-level mean and group-level variance in structural hole positions are negatively associated with individual outcomes. The argument that justifies the aforementioned negative association is that the individualistic, competitive, manipulative and power-oriented behaviors of employees occupying structural hole positions may be beneficial when considering independent individuals, but, instead, they create frictions and problems when it comes to group functioning and group climate. This article provides evidence that group composition variables exercise a constraining effect on individuals, making them perceive less autonomy, and negatively affect satisfaction and performance. Findings provide support for the multilevel nature of networks and for the opposite causal mechanisms activated by structural holes at different levels of analysis.