IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v24y2013i1p30-51.html
   My bibliography  Save this article

Social Network Effects on Productivity and Job Security: Evidence from the Adoption of a Social Networking Tool

Author

Listed:
  • Lynn Wu

    () (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania)

Abstract

By studying the change in employees' network positions before and after the introduction of a social networking tool, I find that information-rich networks (low in cohesion and rich in structural holes), enabled by social media, have a positive effect on various work outcomes. Contrary to the notion that network positions are difficult to alter, I show that social media can induce a change in network structure, one from which individuals can derive economic benefits. In addition, I consider two intermediate mechanisms by which an information-rich network is theorized to improve work performance---information diversity and social communication---and quantify their effects on productivity and job security. Analysis shows that productivity, as measured by billable revenue, is more associated with information diversity than with social communication. However, the opposite is true for job security. Social communication is more correlated with reduced layoff risks than with information diversity. This, in turn, suggests that information-rich networks enabled through the use of social media can drive both work performance and job security, but that there is a trade-off between engaging in social communication and gathering diverse information.

Suggested Citation

  • Lynn Wu, 2013. "Social Network Effects on Productivity and Job Security: Evidence from the Adoption of a Social Networking Tool," Information Systems Research, INFORMS, vol. 24(1), pages 30-51, March.
  • Handle: RePEc:inm:orisre:v:24:y:2013:i:1:p:30-51
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.1120.0465
    Download Restriction: no

    References listed on IDEAS

    as
    1. Wu, Fang & Huberman, Bernardo A. & Adamic, Lada A. & Tyler, Joshua R., 2004. "Information flow in social groups," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 337(1), pages 327-335.
    2. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, December.
    3. Deborah Gladstein Ancona & David F. Caldwell, 1992. "Demography and Design: Predictors of New Product Team Performance," Organization Science, INFORMS, vol. 3(3), pages 321-341, August.
    4. Stephen P. Borgatti & Rob Cross, 2003. "A Relational View of Information Seeking and Learning in Social Networks," Management Science, INFORMS, vol. 49(4), pages 432-445, April.
    5. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 549-599.
    6. Ray Reagans & Ezra W. Zuckerman, 2001. "Networks, Diversity, and Productivity: The Social Capital of Corporate R&D Teams," Organization Science, INFORMS, vol. 12(4), pages 502-517, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:elcore:v:18:y:2018:i:1:d:10.1007_s10660-017-9263-x is not listed on IDEAS
    2. Gert-Jan Vreede & Pedro Antunes & Julita Vassileva & Marco Aurélio Gerosa & Kewen Wu, 2016. "Collaboration technology in teams and organizations: Introduction to the special issue," Information Systems Frontiers, Springer, vol. 18(1), pages 1-6, February.
    3. repec:eee:tefoso:v:143:y:2019:i:c:p:321-335 is not listed on IDEAS
    4. repec:eee:proeco:v:191:y:2017:i:c:p:97-112 is not listed on IDEAS
    5. Haoyuan Liu & Wen Wen & Andrew B. Whinston, 2018. "Peer influence in the workplace: Evidence from an enterprise digital platform," Working Papers 18-08, NET Institute.
    6. Sinan Aral & Chrysanthos Dellarocas & David Godes, 2013. "Introduction to the Special Issue ---Social Media and Business Transformation: A Framework for Research," Information Systems Research, INFORMS, vol. 24(1), pages 3-13, March.
    7. Natalia Levina & Manuel Arriaga, 2014. "Distinction and Status Production on User-Generated Content Platforms: Using Bourdieu’s Theory of Cultural Production to Understand Social Dynamics in Online Fields," Information Systems Research, INFORMS, vol. 25(3), pages 468-488, September.
    8. repec:spr:infosf:v:20:y:2018:i:3:d:10.1007_s10796-017-9810-y is not listed on IDEAS
    9. repec:eee:jbrese:v:94:y:2019:i:c:p:264-272 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:24:y:2013:i:1:p:30-51. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matthew Walls). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.