“Social capital is at once the resources contacts hold and the structure of contacts in a network. The first term describes whom you reach. The second describes how you reach.”
“Information benefits occur in three forms: access, timing, and referrals. ”
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.
Publication Date: August 11, 1995