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Why nets work: Kellogg professor explores collaboration's power

Kellogg World asked Brian Uzzi, professor of management and organizations and a scholar of network theory, how staying connected can create surprising value.

Kellogg World: There's an intuitive sense that networking is important, but just how critical can it be? In your research what are the benefits you have seen for those who take networking seriously?

Brian Uzzi: Pathbreaking research into social networks has shown that they prefigure in lots of important human achievements. Just a sampling of the research shows that after you net out individual characteristics associated with success, such as talent and education, persons with more powerful networks are more creative, better problem solvers, more likely to have clout in selling new ideas, get better pricing on their loans, and enjoy higher salaries and upward mobility. Networks have been shown to affect what life-saving new drugs get adopted, the effectiveness of police officers' crime fighting and who lives longer. The next step is to understand how networks shape entire communities and collective action.  This is one of the reasons why MySpace.com and blogging fascinates business people. If you can unlock the secret of network structure in these communities, it could help you forecast the next big thing or understand what markets are most likely to buy your soap.

KW: How can people improve the effectiveness of their networks?

Brian Uzzi: When many people think of their networks, they think of who they know. This makes sense and is to some degree valid. A crucial observation lost on the casual observer is that networks are also about what you do. People who get involved in shared activities that cut across a broad demographic range build powerful networks because they get diversity of ideas and resources while building strong ties. By contrast, most people build networks low in social capital by populating their networks with people with similar backgrounds, training and ways of making inferences similar to their own.

KW: What misconceptions about networking have you encountered in your research?

Brian Uzzi: Lots of people think of networking as schmoozing and pretending to be friends. They think of mixers and handing out business cards or getting a "rubbing elbows" photo with a celebrity. While this can happen, it is not what networks are about. Networks are about building value for everyone by building on differences that complement each other. They are about giving before receiving. This might sound Pollyanna-ish, but research shows it works.

KW: Do we yet have a full appreciation for social capital's power, or will additional study reveal even more surprises?

Brian Uzzi: One of the most exciting things about this area is its explosiveness. What makes a theory powerful is its ability to explain lots of different things and to continue to explain new, important phenomena. In the last 10 years, network theory has migrated from sociology to nearly all disciplines where it appears to be gobbling up explanations for a range of new (and old) social, economic and biological phenomena. Five years ago, few would have thought that a firm's profits, or the efficiency of the Web, or metabolic pathways of proteins, or a person's success in science, art and industry would have one key thing in common: networks.

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