Structural holes : the social structure of competition

Ronald Burt describes the social structural theory of competition that has developed through the last two decades. The contrast between perfect competition and monopoly is replaced with a network model of competition. The basic element in this account is the structural hole: a gap between two individuals with complementary resources or information. When the two are connected through a third individual as entrepreneur, the gap is filled, creating important advantages for the entrepreneur. Competitive advantage is a matter of access to structural holes in relation to market transactions.

Acknowledgments Introduction 1. THE SOCIAL STRUCTURE OF COMPETITION Opportunity and Capital Information Structural Holes Control and the Tertius Gaudens Entrepreneurs Secondary Holes Structural Autonomy Summary 2. FORMALIZING THE ARGUMENT Network Data Redundancy Constraint Hole Signature Structural Autonomy Summary 3. TURNING A PROFIT Product Networks and Market Profit The Study Population Hole Effects Market Hole Signatures Summary Appendix: Weighing Alternatives 4. GETTING AHEAD Contact Networks and Manager Achievement The Study Population Hole Effects Hierarchy Institutional Holes Selecting a Network Summary Appendix A: Weighing Alternatives Appendix B: Causal Order 5. PLAYER-STRUCTURE DUALITY Structural Unit of Analysis Players and Structures Escape from Attributes No Escape Summary 6. COMMIT AND SURVIVE Holes and Heterogeneity Interface and the Commit Hypothesis Population Ecology and the Survival Hypothesis Summary 7. STRATEGIC EMBEDDING AND INSTITUTIONAL RESIDUE The Other Tertius Strategy Hypothesis Formal Organization as Social Residue Personality as Emotional Residue Summary Notes References Index