Cognitive structural holes and power in organizations

• In Event: 4255 - Section on Economic Sociology Roundtables (1 hour)
  In Refereed Roundtable 60min: 4. Firm / Organizational Level Dynamics

Abstract

Combining Burt’s (1992: 8-49) research on structural holes (SHs) and Krackhard’s (1990) notion of cognitive networks, I propose the concept of cognitive SHs. I assert that people’s cognition of a person’s SHs is a source of power in organizations. To explore this claim, the data collected in a small firm are studied. The results show that: (1) There are substantial differences between actual and cognitive networks in terms of SHs; (2) Egos’ cognitive SHs are larger than alters’ cognition of egos’ SHs, perhaps because alters have less accurate information of egos’ networks than egos; (3) It’s not egos’ actual or cognitive SHs but alters’ cognition of egos’ SHs that determines egos’ reputational power in organizations.

Author

• Zhi Li, The Pennsylvania State University