Economic Networks

David Knoke is professor of sociology at the University of Minnesota.

Winner of the Choice award for Outstanding Academic Title "Knoke very aptly illustrates the importance of networks in the economy and thus helps to make concrete contributions to economic sociology… The book is an excellent introduction … and would work well as a supplement for an introductory course in economic sociology and sociology of networks."Lectures "A masterful integration of numerous and diverseprojects pertaining to economic networks."Sociologica "Scholarship on the role of social networks in economic exchange has been growing at a fast clip, suffusing through several regions of sociology and even into economics itself. David Knoke performs a signal service in ordering and integrating diverse streams of research – at every level from individual economic choices to the structure of the global economy – in this comprehensive, sagacious, and highly readable volume."Paul DiMaggio, Princeton University "David Knoke brings his years of experience analyzing political networks to a broad review of network mechanisms in economic sociology. This is a useful text for anyone interested in a quick, literate, and insightful overview of the burgeoning research on the ways social networks shape economic phenomena."Ronald Burt, University of Chicago Booth School of Business "Having shown the power of the structural approach in both political (1990) and organizational (2001) settings, Dr. Knoke now turns his clear eye to the structural foundations of our economic system. Skillfully bridging levels of analysis from the embeddedness of employees to connectivity in the global system, this book provides a wonderful overview of how economic understanding requires networks. This clear and careful book will be an asset to scholars across the social sciences."James Moody, Duke University

• List of Figures ixPreface xi1 Economics and Social Networks 1Mainstream and Alternative Economic Theories 3The Economic Sociology Perspective 13The Social Network Perspective 21Summary and Outline of the Book 242 Markets and Networks 25Labor Markets 28Consumer Markets 41Producer Markets 56Summary 643 Networks inside Organizations 66Micro-Network Concepts 69Social Capital 75Forming Employee Networks 81Network Outcomes 90Team Networking 105Summary 1104 Networks among Organizations 111Business Startup Networks 112Business Groups 118Interlocking Directorates 128Strategic Alliances 131Evolution of Interorganizational Networks 146Summary 1555 Global Networks 157International Networks 158Supply and Commodity Chains 163World Cities Networks 165A Transnational Capitalist Class? 171Networks of the Global Financial Crisis 177Summary 1866 Looking Forward 187Theory Construction 188Empirical Tools 191Connecting Economy and Polity 193Appendix: Network Resources 197References 200Index 232