Intra-organizational Networks and Performance: A Review

  • Authors:
  • Henk Flap;Bert Bulder;Beate Völker

  • Affiliations:
  • Department of Sociology/ICS, Utrecht University, Heidelberglaan 1, 3584 CS Utrecht, The Netherlands. E-mail: h.flap@fsw.ruu.nl.;Department of Sociology/ICS, Utrecht University, Heidelberglaan 1, 3584 CS Utrecht, The Netherlands. E-mail: h.flap@fsw.ruu.nl.;Department of Sociology/ICS, Utrecht University, Heidelberglaan 1, 3584 CS Utrecht, The Netherlands. E-mail: h.flap@fsw.ruu.nl.

  • Venue:
  • Computational & Mathematical Organization Theory
  • Year:
  • 1998

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Abstract

Intra-organizational network research had its first heydayduring the empirical revolution in social sciences before World WarII when it discovered the informal group within the formalorganization. These studies comment on the classic sociological ideaof bureaucracy being the optimal organization. Later relationalinterest within organizational studies gave way to comparativestudies on the quantifiable formal features of organizations. Therehas been a resurgence in intra-organizational networks studiesrecently as the conviction grows that they are critical toorganizational and individual performance. Along with methodologicalimprovements, the theoretical emphasis has shifted from networks as aconstraining force to a conceptualization that sees them as providingopportunities and finally, as social capital. Because of this shiftit has become necessary not only to explain the differences betweennetworks but also their outcomes, that is, their performance. It alsoimplies that internal and external networks should no longer betreated separately.Research on differences between intra-organizational networks centerson the influence of the formal organization, organizationaldemography, technology and environment. Studies on outcomes deal withdiffusion and adaptation of innovation; the utilization of humancapital; recruitment, absenteeism and turnover; work stress and jobsatisfaction; equity; power; information efficiency; collectivedecision making; mobilization for and outcomes of conflicts; socialcontrol; profit and survival of firms and individual performance.Of all the difficulties that are associated with intra-organizationalnetwork research, problems of access to organizations andincomparability of research findings seem to be the most serious.Nevertheless, future research should concentrate on mechanisms thatmake networks productive, while taking into account the difficultiesof measuring performance within organizations, such as theperformance paradox and the halo-effect.