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BU872 Networks and Social Capital – PhD Seminar Course Outline

Fall 2012 Professor: Dr. Nicole Coviello Telephone: (519) 884 0710 ext 2054 Office: P 3012 Email: ncoviello@wlu.ca Class Location: SBE 3245 Class Times: Tuesdays, 1-4 Faculty Assistant: Cora Hennel-Greer (ext. 2745) 1. COURSE OVERVIEW This doctoral seminar focuses on network theory, a fast growing area of interest in the field of marketing. This seminar is intended to provide an overview of network theory as it pertains to marketing and management by reviewing its basic history, philosophy, theories and methodologies. We will also explore network theory as it relates to core issues of interest to marketing, with a particular interest in social capital. Prerequisite: Doctoral classification or permission of professor. 2. COURSE OBJECTIVES At the end of the course, you should:

a) Have a solid understanding of the main concepts and developments in the network and social capital literatures;

b) Be able to apply network and social capital theories and concepts to identify important research issues in marketing; and

c) Be able to develop a solid term paper worthy of publication. 3. SEMINAR PREPARATION AND DISCUSSION INFORMATION The primary teaching method will be small group discussions based on extensive readings. You will each be required to read a number of articles and there are (at least) four ways to prepare for each seminar. All are relevant here. First, read each article and complete your summary of it. Second, identify any limitations beyond those specified by the authors. Third, think about how the readings complement one another. Fourth, try to identify high priority directions for future research. While we will spend some time discussing the strengths and weaknesses of individual articles, we will also focus on the linkages among articles. You may also find the Appendix on p 11 helpful.

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4. COURSE EVALUATION Course requirements and their weights in arriving at the overall grade for this course are:

Class Participation 30% Manuscript Review 20% Term Paper 50%

4.1 Class Participation: Class participation is central to this seminar and you are expected to play an active role in regularly discussing the assigned readings. My evaluation of class participation will be based on your level of preparation, the strength of contributions to our discussion and your engagement with the material and course. Excellent preparation lays the foundation for quality involvement and this should be a high priority for you. Process: Each week (after session 1), I will divide up the next week’s readings for the purpose of determining who will lead the discussion of each article. However, you are expected to prepare written summaries of all the readings for each session. These summaries should not exceed 2 typed pages (single spaced). Summaries should highlight the most salient points as succinctly as possible. To maintain consistency, each summary should have the following format:

1. Complete citation: in bold, at the top of the page (following the Journal of Marketing format); 2. Summarized by: your name; 3. Purpose of article: describe why the article was written and how this reading fits within the

broader stream of research in marketing; 4. Contributions: summarize and prioritize the key contributions of the paper; 5. Theoretical foundation: summarize the theoretical basis of the paper, i.e. note what theory is used

to frame the study and analyze the data (if data is used); 6. Methodology: summarize the research design and methodology (note: some of the readings will

be conceptual rather than empirical); 7. Results: summarize the major findings; 8. Future research ideas: summarize the research suggestions forwarded by the author(s) that are

particularly insightful; 9. Your comments: outline anything you found surprising, interesting, missing or confusing in the

article. Also identify at least one other research question that stems from the study (i.e. other than that outlined by the authors).

Please bring copies of your summaries to the start of each class so they can be shared with the other seminar participants and me. These summaries will be helpful study and reference tools as you prepare for your comprehensive exams. Note too that that although you may only be responsible for leading the discussion of one or two articles per week, you are expected to read and take notes on all of the articles. Failing to do so will have a significant impact on your ability to participate in our discussions. Article Critiques/Discussions: For each article you are asked to critique, you will make a formal presentation (max 15 minutes) that summarizes Points 3, 5, 7 and 9 (from above). Since everyone will have read the paper, your emphasis will be on Point 9. These presentations are useful in developing your academic presentation skills. They

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are also the basis for stimulating class discussion and advancing your thoughts regarding network and social capital research in marketing. 4.2 Manuscript Review: During this seminar you will be required to write a detailed review of one manuscript (either published or unpublished). Reviewing papers is an important professional activity for any scholar and is an excellent way to develop critical thinking capabilities within the discipline. The critical review should thoroughly evaluate the following:

1) Justification for the research; 2) Identification of a meaningful research problem; 3) Appropriateness of the methodology; 4) Appropriateness of the data analysis and authors’ interpretation of their results; 5) Contributions of the study (theoretical and empirical); 6) Extent to which limitations are fully recognized; and 7) Implications for research and practice.

In your review, it is vital that you: 1) commend the authors for aspects of the paper that you think have been done well, and 2) state what you think the authors should do to improve the paper. In the context of the journal for which the paper is targeted, you will indicate whether you think: 1) the paper should be rejected (i.e. when authors are not encouraged to submit a revision of the present manuscript), 2) the paper should be granted a ‘revise and resubmit’ (i.e. a rejection where a revision is encouraged), or 3) the paper should be accepted as is (or with only minor changes). Your review should not exceed 3 single spaced pages. I will give you a selection of manuscripts from which you will select one paper for the assignment. 4.3 Term Paper: This involves developing a research proposal much like that prepared when working on a dissertation. Your proposal must have a network and/or social capital focus and include the following:

1. Introduction: an overview of the proposed research; 2. Literature Review: concepts and principles, theory, empirical studies (ideally this section

should be sufficient in depth and breadth so as to lead to a publishable review article); 3. Proposed Research Design and Methodology including: study rationale, research objectives,

statement of hypotheses or propositions, proposed research design, model specification (if appropriate), proposed analytic approach;

4. Expected Contributions: theoretical, methodological and/or empirical; and 5. References

Note 1 – your paper should be formatted as though being submitted to the Journal of Marketing. If you are a 2

nd year student, it may be developed in parallel with your ideas for a thesis proposal but cannot

form the basis of it.

5. ACADEMIC INTEGRITY

Please familiarize yourself with the Academic Integrity section of the Graduate Studies Calendar. Any

student found to be in violation of Academic Integrity Guidelines will be subject to penalties for academic

dishonesty.

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6. STUDENT PRIVACY

My goal with this course is to offer you a positive and developmental educational experience. During the

course, it may be necessary to share your names, student ID number, email addresses or other personal

information to members of the class and/or faculty members involved with Laurier’s PhD programme.

Every reasonable effort will be made to keep this information private and secure.

Accordingly:

1. Assignments will only be released to the student who submitted them;

2. Final grades will only be released through the Registrar’s Office;

3. The individual circumstances or performance of a student on an assignment will not be discussed before, during or after class. If you want to review your performance or discuss personal circumstances affecting your performance, please make an appointment to speak to me in private;

4. You should use your WLU email account as this is the only path that is guaranteed access to my email address;

5. The record of your performance will be maintained by me for a period of one year after completion of the course.

7. SCHEDULE

Date Area Coursework Due

11 Sept --- * ---

18 Sept Some Classics (Part I)

25 Sept Some Classics (Part II)

2 Oct Network Interactions

9 Oct Network Structure

16 Oct Network Dynamics Manuscript Review

23 Oct Linking Networks and Social Capital

30 Oct Linking Networks with Capabilities

6 Nov Linking Networks with Performance

13 Nov The Dark Side of Networks and Social Capital

20 Nov Methodological Issues

27 Nov Multilevel Issues

4 Dec Review and Theory Papers

19 Dec Final Paper

* I will be overseas for the first week of classes. Thus, use this time to get settled into your other courses and we will begin our course on 19 September. Note – I will be adding 15 minutes to each class, as necessary, to ensure we cover all the material.

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8. READINGS LIST 18 Sept. – Some Classics (Part I) Burt, Ronald S. (2000), Structural Holes versus Network Closure as Social Capital, pre-print for chapter in Social Capital Theory and Research, Lin N, KS Cook and RS Burt (eds.), Aldine de Gruyter, 1-30. Coleman, James S. (1988), Organizations and Institutions: Sociological and Economic Approaches to the Analysis of Social Structure, American Journal of Sociology, 94, S95-S120. Granovetter, Mark S. (1973), The Strength of Weak Ties, American Journal of Sociology, 78 (6), 1360-1380. Granovetter, Mark (1983), The Strength of Weak Ties: A Network Theory Revisited, 1, 201-233. Background Reading: Gladwell, Malcolm (1999), Six Degree of Lois Weisberg, The New Yorker, January 11, 52-63 (pdf on MLS site). 25 Sept. – Some Classics (Part II) Adler, Paul S. and Seok-Wook Kwon (2002), Social Capital: Prospects for a New Concept, Academy of Management Review, 27 (1), 17-40. Burt, Ronald S. (2004), Structural Holes and Good Ideas, American Journal of Sociology, 110 (2), 349-999. Nahapiet, Janine and Sumantra Ghoshal (1998), Social Capital, Intellectual Capital and the Organizational Advantage, Academy of Management Review, 23 (2), 242-266. Portes, Alejandro (1998), Social Capital: Its Origins and Applications in Modern Sociology, Annual Review of Sociology, 24, 1-24. Background Reading: Burt, Ronald S. (2001), The Social Capital of Structural Holes, pre-print for chapter in New Directions in Economic Sociology, Guillen, MF, R Collins, P England and M Meyer (eds.), New York: Russell Sage Foundations. 2 Oct. - NW Interactions Anderson, James C., Håkan Håkansson and Jan Johanson (1994), Dyadic Business Relationships Within a Business Network Context, Journal of Marketing, 58 (4), 1-15. Elfring, Tom and Willem Hulsink (2007), Networking by Entrepreneurs: Patterns of Tie Formation in Emerging Organizations, Organization Studies, 28 (12), 1849-1872. Hallen, Benjamin L. and Kathleen M Eisenhardt (2012), Catalyzing Strategies and Efficient Tie Formation: How Entrepreneurial Firms Obtain Investment Ties, Academy of Management Journal, 55 (1), 35-70.

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Vissa, Balagopal (2011), A Matching Theory of Entrepreneurs’ Tie Formation Intentions and Initiation of Economic Exchange, Academy of Management Journal, 54 (1), 137-158. Vissa, Balagopal (2012), Agency in Action: Entrepreneurs’ Networking Style and Initiation of Economic Exchange, Organization Science, 23 (2), 492-510. 9 Oct. - NW Structure Cattani, Gino and Simone Ferriani (2008), A Core/Periphery Perspective on Individual Creative Performance: Social Networks and Cinematic Achievements in the Hollywood Film Industry, Organization Science, 19 (6), 824-844. Ferriani, Simone, Gino Cattani and Charles Baden-Fuller (2009), The Relational Antecedents of Project-Entrepreneurship: Network Centrality, Team Composition and Project Performance, Research Policy, 38, 1545-1558. Obstfeld, David (2005), Social Networks, the Terius Iungens Orientation and Involvement in Innovation, Administrative Science Quarterly, 50, 100-130. Reingen, Peter H. and Jerome B. Kernan (1986), Analysis of Referral Networks in Marketing: Methods and Illustration, Journal of Marketing Research, 13 (November), 370-378. Wong, Sze-Sze and Wai Fong Boh (2010), Leveraging the Ties of Others to Build a Reputation for Trustworthiness of Peers, Academy of Management Journal, 53 (1), 129-148. 16 Oct. - NW Dynamics Ahuja, Gautam, Guiseppe Soda and Akbar Zaheer (2012), The Genesis and Dynamics of Organizational Networks, Organization Science, 23 (2), 434-448. Hite, Julie M. (2005), Evolutionary Processes and Paths of Relationally Embedded Network Ties in Emerging Entrepreneurial Firms, Entrepreneurship Theory and Practice, 29 (1), 113 – 144. Hite, Julie M. and William S. Hesterly (2001), The Evolution of Firm Networks: From Emergence to Early Growth of the Firm, Strategic Management Journal, 22 (3), 275-286. Koka, Balaji R., Ravindranath Madhavan and John E Prescott (2006), The Evolution of Interfirm Networks: Environmental Effects on Patterns of Network Change, Academy of Management Review, 31 (3), 721-737. Larson, Andrea and Jennifer A. Starr (1993), A Network Model of Organization Formation, Entrepreneurship Theory and Practice, 17 (2), 5 – 15. Supplementary Reading: Coviello, Nicole E. (2006), The Network Dynamics of International New Ventures, Journal of International Business Studies, 37, 713-731. 23 Oct. - Linking Networks and Social Capital De Carolis, Donna Marie, Barrie E. Litzky and Kimberly A. Eddleston (2009), Why Networks Enhance the

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Progress of New Venture Creation: The Influence of Social Capital and Cognition, Entrepreneurship Theory and Practice, 33 (2), 527-545. Gargiulo, Martin and Mario Benassi (2000), Trapped in Your Own Net? Network Cohesion, Structural Holes and the Adaptation of Social Capital, Organization Science, 11 (2), 183-196. Mosey, Simon and Mike Wright (2007), From Human Capital to Social Capital: A Longitudinal Study of Technology-Based Academic Entrepreneurs, Entrepreneurship Theory and Practice, 31 (6), 909-935. Tsai, Wenpin and Sumantra Ghoshal (1998), Social Capital and Value Creation: The Role of Interfirm Networks, Academy of Management Journal, 41 (4), 464-476. Walker, Gordon, Bruce Kogut and Weijian Shan (1997), Social Capital, Structural Holes and the Formation of an Industry Network, Organization Science, 8 (2), 109-125. 30 Oct. – Linking NW and Caps Capaldo, Antonio (2007), Network Structure and Innovation: The Leveraging of a Dual Network Capability as a Distinctive Relational Capability, Strategic Management Journal, 28, 585-608. Kemper, Jan, Andreas Engelen and Malte Brettel (2011), How Top Management’s Social Capital Fosters the Development of Specialized Marketing Capabilities: A Cross-Cultural Comparison, Journal of International Marketing, 19 (3), 87-112. Mahmood, Ishtiaq P., Hongjin Zhu and Edward J. Zajac (2011), Where Can Capabilities Come From? Network Ties and Capability Acquisition in Business Groups, Strategic Management Journal, 32, 820-848. Mu, Jifeng and Anthony Di Benedetto (2012), Networking Capability and New Product Development, IEEE Transactions on Engineering Management, 59 (1), 4-19. Ritter, Thomas and Hans Georg Gemünden (2003), Network Competence: Its Impact on Innovation Success and its Antecedents, Journal of Business Research, 56, 745-755. Supplementary Readings: Dyer, Jeffrey H. and Harbir Singh (1998), The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage, Academy of Management Review, 23 (4), 660-679. Hargadon, Andrew and Robert I. Sutton (1997), Technology Brokering and Innovation in a Product Development Firm, Administrative Science Quarterly, 42, 716-749. McEvily, Bill and Alfred Marcus (2005), Embedded Ties and the Acquisition of Competitive Capabilities, Strategic Management Journal, 26, 1033-1055. 6 Nov. – Linking NW and Performance Castellucci, Fabrizio and Gokhan Ertug (2010), What’s In It For Them? Advantages of Higher-Status Partners in Exchange Relationships, Academy of Management Journal, 53 (1), 149-166. Gulati, Ranjay and Monica C. Higgins (2003), Which Ties Matter When? The Contingent Effects of Interorganizational Partnerships on IP Success, Strategic Management Journal, 24, 127-144.

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Gulati, Ranjay, Dovev Lavi and Ravindranath Madhavan (2011), How Do Networks Matter? The Performance Effects of Interorganizational Networks, Research in Organizational Behavior, 31, 207.224. Soda, Giuseppe, Alessandro Usai and Akbar Zaheer (2004), Network Memory: The Influence of Past and Current Networks on Performance, Academy of Management Review, 47 (6), 893-906. Swaminathan, Vanitha and Christine Moorman (2009), Marketing Alliances, Firm Networks and Firm Value Creation, Journal of Marketing, 73 (Sept), 52-69. 13 Nov. – The Dark Side of Networks and Social Capital Gu, Flora F, Kineta Hung and David K Tse (2008), When Does Guanxi Matter? Issues of Capitalization and Its Dark Sides, Journal of Marketing, 72 (July), 12-28. Sorenson, Olav and David M. Waguespack (2006), Social Structure and Exchange: Self-Confirming Dynamics in Hollywood, Administrative Science Quarterly, 51, 560-589. Uzzi, Brian (1997), Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness, Administrative Science Quarterly, 42 (1), 35-67. Xiong, Guiyang and Sundar Bharadway (2011), Social Capital of Young Technology Firms and Their IPO Values: The Complementary Role of Relevant Absorptive Capacity, Journal of Marketing, 75 (November), 87-104. 20 Nov. – Methodological Issues Burgess, Thomas F. and Nicola E.Shaw (2010), Editorial Board Membership of Management and Business Journals: A Social Network Analysis Study of the Financial Times 40, British Journal of Management, 21, 627-648. Coviello, Nicole E. (2005), Integrating Qualitative and Quantitative Techniques in Network Analysis, Qualitative Market Research, 8 (1), 39-60. Jack, Sarah L. (2010), Approaches to Studying Networks: Implications and Outcomes, Journal of Business Venturing, 25, 120-137. Thieme, Jeff (2007), The World’s Top Innovation Management Scholars and their Social Capital, Journal of Product Innovation Management, 24 (3), 214-229. Webster, Cynthia M. and Pamela D. Morrison (2004), Network Analysis in Marketing, Australasian Marketing Journal, 12 (2), 8-18. Supplementary Reading: Freeman, Linton C. (1978/89), Centrality in Networks – Conceptual Clarification, Social Networks, 1, 215-239. Useful Site: UCINET - Borgatti, Stephen P., Martin G. Everett, and Linton C. Freeman (2002). UCINET for Windows:

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Software for Social Network Analysis. Harvard, MA: Analytic Technologies. 27 Nov. – Multi-level Issues Brass, Daniel J., Joseph Galaskiewicz, Henrich R. Greve and Wenpin Tsai (2004), Taking Stock of Networks and Organizations: A Multilevel Perspective, Academy of Management Journal, 47, 6, 795-817. Gnyawali, Devi R. and Ravindranath Madhavan (2001), Cooperative Networks and Competitive Dynamics: A Structural Embeddedness Perspective, Academy of Management Review, 26 (3), 431-445. Kelly, Donna J., Lois Peters and Gina Colarelli O’Connor (2009), Intra-Organizational Networking for Innovation-Based Corporate Entrepreneurship, Journal of Business Venturing, 24, 221-235. Payne, G. Tyge, Curt B. Moore, Stanley E. Griffis and Chad W. Autry (2011), Multilevel Challenges and Opportunities in Social Capital Research, Journal of Management, 37 (2), 491-520. 4 Dec. - Review and Theory Papers Borgatti, Stephen P. and Pacey C. Foster (2003), The Network Paradigm in Organizational Research: A Review and Typology, Journal of Management, 29 (6), 991-1013. De Carolis, Donna Marie and Patrick Saparito (2006), Social Capital, Cognition and Entrepreneurial Opportunities: A Theoretical Framework, Entrepreneurship Theory and Practice, 30 (1), 41- 56. Galaskiewicz, Joseph (2007), Has a Network Theory of Organizational Behaviour Lived Up to Its Promises? Management and Organization Review, 3 (1), 1-18. Kilduff, Martin and Daniel J. Brass (2010), Organizational Social Network Research: Core Ideas and Key Debates, The Academy of Management Annals, 4 (1), 317-357. Slotte-Kock, Susanna and Nicole Coviello (2010), Entrepreneurship Research on Network Processes: A Review and Ways Forward, Entrepreneurship Theory and Practice, 34 (1), 31-57. Background Reading: Hoang, Ha and Bostjan Antoncic (2003), Network-Based Research in Entrepreneurship: A Critical Review, Journal of Business Venturing, 18, 165-187.

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OTHER READINGS: General Theory/Contribution Papers: (and a reminder to be familiar with them):

Bacharach, Samuel (1989), Organizational Theories: Some Criteria for Evaluation, Academy of Management Review, 14 (4), 496-515.

Varadarajan, P. Rajan (2003), Musings on Relevance and Rigor of Scholarly Research in Marketing, Journal of the Academy of Marketing Science, 31 (4), 368-376.

Whetten, David A (1989), What Constitutes a Theoretical Contribution, Academy of Management Review, 14 (4), 490-495.

On Cross-Disciplinary Work:

Okhuysen, Gerardo and Jean-Philippe Bonardi (2011), The Challenges of Building Theory by Combining Lenses, Academy of Management Review, 36 (1), 6-11.

Whetten, David A, Teppo Felin, and Brayden G King (2009), The Practice of Theory Borrowing in Organizational Studies: Current Issues and Future Directions, Journal of Management, 35 (3), 537-563.

Editorial Guidance re Theory and Contribution:

Barley, Stephen R. (2006), When I Write My Masterpiece: Thoughts on What Makes a Paper Interesting, Academy of Management Journal, 49 (1), 16-20.

Dutton, Jane E. and Janet M. Dukerich (2006), The Relational Foundation of Research: An Underappreciated Dimensions of Interesting Research, Academy of Management Review, 49 (1), 21-26.

LePine, Jeffery A. and Adelaide Wilcox King (2010), Developing Theoretical Insight from Reviews of Existing Theory and Research, 35 (4), 506-509.

Rindova, Violina (2008), Publishing Theory When You Are New to the Game, Academy of Management Review, 33 (2), 300-303.

Relevant Books on Network Research: Kilduff, Martin and Wenpin Tsai (2007), Social Networks and Organizations, Los Angeles, CA: Sage Publications Ltd. Ven den Bulte, Christophe and Stefan Wuyts (2007), Social Networks and Marketing, Cambridge, MA: Marketing Science Institute.

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APPENDIX - Questions to ask while reading… 1. The Research Question and Motivation

• What is the research question (RQ)?

• How does the RQ (or RQs) relate to marketing and strategy theory?

• Is the RQ clearly stated?

• Is the RQ clearly grounded in theory?

• What motivates this research?

• Is there a compelling argument made for reading this paper? 2. The Literature Review

• Is the review complete?

• Is it accurate?

• Is it too much of a description rather than a critique?

• It is well-structured, leading to a clear point of argument? 3. Conceptual Arguments

• What are the research hypotheses or propositions?

• Are they clearly stated and testable?

• Is there sufficient theoretical justification or rationale for them?

• What are the conceptual independent/predictor variables? Are they sensible?

• What are the conceptual dependent/outcome variables? Are they sensible? 4. Empirical Work - Quantitative

• What is the research design? Is it sensible and appropriate?

• How are the independent variables operationalized? Are they appropriate?

• How are the dependent variables operationalized? Are they appropriate?

• What are the control, extraneous, moderator and/or mediator variables?

• Is it clear how the data was collected and analyzed (sampling, tests for non-response, tests for common method variance, etc.)?

• Is there enough information that you could replicate the study?

• Is the sample representative of the population to which the findings will purportedly generalize? 5. Empirical Work - Qualitative

• What is the research design? Is it sensible and appropriate?

• Is it clear how the data was collected and analyzed (site selection, analytic techniques, etc.)?

• Is there enough information that you could replicate the study?

• Is the data used to develop or refine theory? Or is it just descriptive? 6. Results (for empirical papers)

• What were the key findings?

• Were they credible?

• Do they adequately answer the questions raised by the author?

• Do they add knowledge to the discipline? 7. Conclusions

• Are the theoretical and empirical contributions clearly (and reasonably) identified?

• Are these really contributions that are interesting and new (keep the publication date in mind)?

• Are the important limitations recognized?

• Is there a clearly identified set of research implications?

• Is there a clearly identified set of managerial implications?

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