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Networking delivers competitive advantage through the sharing of good ideas


In his paper The Social Origins of Good Ideas, Ronald Burt from the University of Chicago looks at the behaviour of employees and how their networks affect the generation of new ideas and how often they are applied.

Two key trends appeared from his study: that ideas generated from within a particular department were rejected more often, being seen as too insular; and that people who’s network spanned individuals across departments and organisations were more likely to come up with good ideas.

Neither of these results should be particularly surprising, but it’s good to see them qualified in an academic study.  Water cooler conversations that take place between colleagues from across an organisation enable indivudals to put a different perspective on a situation, giving examples of how something has been done elsewhere or simply to say ‘have you thought of doing it this way’.

Burton summarises the study in his paper:

People whose networks span structural holes have early access to diverse, often contradictory, information and interpretations which gives them a good competitive advantage in delivering good ideas.  People connected to groups beyond their own can expect to find themselves delivering valuable ideas, seeming to be gifted with creativity.  This is not creativity born of deep intellectual ability.  It is creativity as an import-export business.  An idea mundane in one group can be a valuable insight in another.

Some of this explains the explosive growth of social networking.  With 25% of all internet pages visited being to one of the top 10 networking sites and 9% of all internet visits going in the same direction, our insatiable need to connect with others is going somewhere to being satisfied.

The next step is to move this networking into a truly collaborative environment, where conversations can take place between many in a virtual space that crosses geographic and language boundaries.

Ten years ago this was just a figment of our imagination, today, thanks to some very clever folk, it’s a reality.

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