It is quite natural for human beings to be part of a network. Our way of thinking today is permeated by network and we live in an era of networks. Facebook, Twitter and Xing have many millions of users. Within months services like Pinterest and Instagram became leading companies. Networks are not really new. For generations people invested time taking part in networking events meeting others. The importance of building connections is intuitively obvious to everybody (Sattel 2014). Scientists of different areas and disciplines deal with the subject of networks. Networks are everywhere in relationships between people but also in cancer cells, in the brain, in mathematic graphs as well as in technical devices and of course in global economies. Solely in business and economy the diversity of networks is just incredible (Barabási 2015). The technical progress in current time revolutionized the possibilities of networking. The transport is cheaper, the infrastructures supreme, mobile telephony and not least the Internet have a great impact on the flexibility and quantity of networks today (Mogensen; Erikesen). The next economic revolution shall be called networked economy. It is not about Big Data or devices, but much more about people. People are the ones who continue to use technology and take part in the global ocean of data (Sharma 2015). Therefore for better understanding of network economy, it is useful to start describing networks or some network theories with regard to interpersonal relationships or networks between people.
Table of Contents
- 1 Introduction
- 2 Networks
- 2.1 Six degrees of separation or the Small-world-property
- 2.2 Strong and weak ties
- 2.2.1 Strong ties
- 2.2.2 Weak ties
- 2.3 Structural holes
- 2.3.1 Information advantages
- 2.3.2 Control and innovation
- 2.4 Metcalfe's Law and Positive Feedback Effect
- 2.5 Enterprise 2.0 - Bull's Eye
- 3. Conclusion
- 4. Outlook
Objectives and Key Themes
This paper aims to explore the concept of the network economy by examining relevant network theories and their applications in business and economics. It begins by establishing the prevalence of networks in modern society and then delves into specific network theories to understand their impact on economic activity.
- The Small-world-property and its implications for information dissemination and viral marketing.
- The distinction between strong and weak ties in networks and their respective roles in information exchange and social capital.
- The concept of structural holes and their impact on information advantages and innovation.
- The role of technology in shaping and expanding networks.
- The significance of human interaction within the context of the network economy.
Chapter Summaries
1 Introduction: This introductory chapter establishes the pervasive nature of networks in contemporary society, highlighting the increasing importance of networks in various aspects of life, from social interactions to global economies. It emphasizes the role of technology in revolutionizing networking capabilities and posits the network economy as the next significant economic revolution, focusing on the human element as a key driver of technological usage within the vast global network of data.
2 Networks: This chapter provides an overview of significant network theories developed throughout the 20th and 21st centuries. It emphasizes the continuing relevance of these older theories for understanding contemporary networks and their impact. The chapter sets the stage for a deeper exploration of specific network concepts that follow.
2.1 Six degrees of separation or the Small-world-property: This section explores Milgram's classic experiment demonstrating the "small-world" phenomenon—that most individuals in a network can be connected through a relatively small number of intermediaries. It discusses subsequent research confirming this property and illustrates its application in viral marketing strategies, using the example of Hotmail's rapid growth through word-of-mouth marketing facilitated by its inherent network structure. The discussion highlights how the small-world phenomenon enables rapid information spread across vast networks.
2.2 Strong and weak ties: This section delves into Granovetter's theory differentiating between strong and weak ties within social networks. Strong ties, characterized by high intensity, intimacy, and frequent interaction, are contrasted with weak ties, which are less intense but often bridge different social groups. The chapter elaborates on the distinct advantages of both strong and weak ties. Strong ties foster trust and cohesion within a group, while weak ties serve as bridges connecting individuals to broader networks and diverse information sources. This section also notes how strong ties, while beneficial for close relationships and trust, may also lead to isolation from external networks.
Keywords
Network economy, network theory, small-world property, strong ties, weak ties, structural holes, viral marketing, social networks, information dissemination, innovation, technology, human interaction.
Frequently Asked Questions: A Comprehensive Language Preview
What is the overall topic of this document?
This document is a comprehensive language preview providing an overview of a paper exploring the concept of the network economy. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main topics covered in the paper?
The paper delves into network theories and their applications in business and economics. Key themes include the small-world property, strong and weak ties in networks, structural holes, Metcalfe's Law, and the role of technology and human interaction in the network economy.
What is the "small-world property" and its significance?
The small-world property refers to the phenomenon where most individuals in a network are connected through a relatively small number of intermediaries. The paper explores its implications for information dissemination and viral marketing, using Hotmail's growth as an example.
What is the difference between strong and weak ties in networks?
Strong ties are characterized by high intensity, intimacy, and frequent interaction, fostering trust and cohesion. Weak ties, while less intense, connect individuals to broader networks and diverse information sources. The paper discusses the advantages of both.
What are structural holes and their impact?
Structural holes are gaps in a network that connect different clusters of individuals. The paper examines how controlling these holes provides information advantages and fosters innovation.
What role does technology play in the network economy?
The paper highlights the crucial role of technology in shaping and expanding networks, revolutionizing networking capabilities, and facilitating information dissemination and communication across vast distances.
What is the significance of human interaction in the network economy?
The document emphasizes that despite the technological advancements, the human element remains a key driver of technological usage and interaction within the network economy.
What are the key chapters and their summaries?
The paper includes an introduction establishing the pervasiveness of networks, a chapter on network theories, a section on the small-world property, a section on strong and weak ties, and a concluding outlook. Each chapter summary provides a detailed overview of its content.
What are the key objectives of this paper?
The paper aims to explore the concept of the network economy by examining relevant network theories and their applications in business and economics, focusing on the impact of networks on economic activity.
What are the keywords associated with this paper?
Keywords include network economy, network theory, small-world property, strong ties, weak ties, structural holes, viral marketing, social networks, information dissemination, innovation, technology, and human interaction.
- Citar trabajo
- Aldona Giesbrecht (Autor), 2017, Network Economy, Múnich, GRIN Verlag, https://www.grin.com/document/463460
