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Peers and Network Growth: Evidence from a Natural Experiment

Author

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  • Sharique Hasan

    (Stanford University, Stanford, California 94304)

  • Surendrakumar Bagde

    (Indian Administrative Service, Mumbai 400021, India)

Abstract

Much research suggests that social networks affect individual and organizational success. However, a strong assumption underlying this research is that network structure is not reducible to the individual attributes of social actors. In this article, we test this assumption by examining whether interacting with random peers causes exogenous growth of a person’s network. Using three years of network data for students at an Indian college, we evaluate the effect of peers on network growth. We find strong evidence that interacting with random, but well-connected, roommates causes significant growth of a focal student’s network. Further, we find that this growth also implies an increase in how close an actor moves to a network’s center and whether that actor is likely to serve as a network bridge. Fundamentally, our results demonstrate that exogenous factors beyond individual agency—i.e., random peers—can shape network structure. Our results also provide a useful model for causally identifying the determinants of network structure and dynamics. This paper was accepted by Gérard Cachon, organizations.

Suggested Citation

  • Sharique Hasan & Surendrakumar Bagde, 2015. "Peers and Network Growth: Evidence from a Natural Experiment," Management Science, INFORMS, vol. 61(10), pages 2536-2547, October.
  • Handle: RePEc:inm:ormnsc:v:61:y:2015:i:10:p:2536-2547
    DOI: 10.1287/mnsc.2014.2109
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    References listed on IDEAS

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    Cited by:

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    2. Houxing Tang & Zhenzhong Ma & Jiuling Xiao & Lei Xiao, 2020. "Toward a more Efficient Knowledge Network in Innovation Ecosystems: A Simulated Study on Knowledge Management," Sustainability, MDPI, vol. 12(16), pages 1-18, August.
    3. Hitoshi Mitsuhashi & Azusa Nakamura, 2022. "Pay and networks in organizations: Incentive redesign as a driver of network change," Strategic Management Journal, Wiley Blackwell, vol. 43(2), pages 295-322, February.
    4. Barlow, Matthew A. & Hesterly, William S. & Cameron Verhaal, J., 2023. "Catching a falling star: Mobility of declining star performers, peer effects, and organizational performance in the National Football League," Journal of Business Research, Elsevier, vol. 165(C).
    5. Adam M. Kleinbaum, 2018. "Reorganization and Tie Decay Choices," Management Science, INFORMS, vol. 64(5), pages 2219-2237, May.
    6. Sharique Hasan & Rembrand Koning, 2020. "Designing social networks: joint tasks and the formation and endurance of network ties," Journal of Organization Design, Springer;Organizational Design Community, vol. 9(1), pages 1-19, December.
    7. Gianluca Carnabuci & Cécile Emery & David Brinberg, 2018. "Emergent Leadership Structures in Informal Groups: A Dynamic, Cognitively Informed Network Model," Organization Science, INFORMS, vol. 29(1), pages 118-133, February.
    8. Fanshun Zhang & Congdong Li & Cejun Cao & Zhiwei Zhang, 2022. "Random or preferential? Evolutionary mechanism of user behavior in co-creation community," Computational and Mathematical Organization Theory, Springer, vol. 28(2), pages 141-177, June.

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