Social Network Theory

Social network theory is based on the assumption that social relations are the key to explaining both individual action and collective outcomes. Networks may be defined as bounded sets of actors, be they organizations, institutions, or individuals that are connected by specific relationships. Network theory refers to the study of the structural forms—or patterning—of the ties that link these units. Attention to social networks has a long tradition, specifically in social anthropology, social psychology and sociometrics, as well as economic sociology and organizational theory. Lately, real-world phenomena, such as changes in the organization of capitalism, experiments in new forms of decentralized governance as well as advances in the [Page 893]computer-based analytical tools associated with network theory, have increased interest in network approaches in other parts of the social sciences as well.

Most work on social networks has tended to emphasize the importance of informal structures in interaction and the way in which formal organizations are embedded within other, less-visible institutional structures. Here an influential strand of research has revived the notion of the “embeddedness” of economic exchanges within social relations.

Network analysis criticizes approaches that focus primarily on the specific characteristics or attributes of a given unit, be it an individual, organization, social class, or a nation-state, to explain its behavior or specific outcomes. Instead, it is argued that such characteristics or attributes only acquire meaning when set in relation to others. Ultimately, it is relationships that form the resources that pattern constraints and opportunities of actors. Whether it is cognition, practices, trust, or resource flows, exchange is understood as always already structurally biased through the shape of a given network. This type of view contrasts with analysis of structure in terms of fixed categories, such as class or race, formal institutional frameworks or strands of individual behavioralism. In this sense, network theory refers to a type of structural analysis that locates structure, including cognitive or behavioral patterns within—and originating from—the observable form and content of relationships among a set of relevant actors or units, providing both resources and limits for action.

Analysts subscribing to this approach are united by a number of common sensitivities and core concepts, yet the use of common terms often masks widely different approaches.

Whereas all network analysts agree on the fundamental importance of relational interdependence for describing and explaining social phenomena, opinions differ as to what extent network theory constitutes a proper theory. Some see it as primarily referring to a specific mode of analysis applicable to a wide range of phenomena, a practical toolbox for more precisely describing and measuring relational configurations and their structural characteristics. Others see it moving toward a more or less consistent body of theoretical propositions and explorations that speak to longstanding debates in anthropology and social psychology about the contextual nature and evolution of social life. Indeed, for its most ambitious adherents, network theory holds out the promise of bridging micro- and macrolevels of social analysis by pointing to ways in which large-scale social patterns may be created and sustained by distinct individual or organizational network dynamics.

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