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Entrepreneurial network: Transforming research into practise
Structure of presentation
• From research into practise
• The IDEAS network session
• From practise into research
The Programme
Delivered at DSIC, , ,the programme comprises of three
interactive workshop programmes plus additional bespoke support for high-tech SME’s;
Customer Focused Value & Innovation May - June ‘09
Competitive Advantage through People and Processes Oct - Nov ’09
Beyond Networking, Creativity Collaboration and Growth Jan – Feb ’10
Each workshop programme consists of 4-6 sessions, cohorts of 15 -20 companies.
Workshop Program 3
Beyond Networking Creativity, Collaboration and Growth
Six Degrees of Separation
First mentioned in 1920’s by Frigyes Karinthy
in short stories called ‘Everything Is Different’
“Everybody on this planet is separated by only six other
people. Six degrees of separation. Between us and
everybody else on this planet. The president of the United
States. A gondolier in Venice… It’s not just the big names. It’s
anyone. A native in a rain forest. An Eskimo. I am bound to everyone on this planet by a
trail of six people…” John Guare's Six Degrees of Separation
First test: Stanley Milgram’s experiment
Stanley Milgram sent mails to random people in Kansas and Nebraska, and asked them to
readdress the mail to their acquaintance who may know the
‘target’ person in Boston. S. Milgram (1977) The Individual in a Social World
Second test: Erdos number
Paul Erdos is very famous mathematician who published
+ 1500 papers.
A person who writes a paper with him has Erdos Number of 1. A
person who writes a paper with a person whose Erdos Number is 1
has Erdos Number of 2. And so on.
http://www.oakland.edu/enp/Paul Erdős (1913-1996)
The results
Average number of intermediate people in
Stanley Migram experiment is 5.5
Erdos Number Distribution
0
10000
20000
30000
40000
50000
60000
70000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Erdos Number
Peop
le
The average Erdös number is 4.69 and the median is 5.
Third test: The Kevin Bacon game
Connect any actor to Kevin Bacon, by linking actors who have acted in the
same movie.
Oracle of Bacon website uses Internet Movie
Database (IMDB.com) to find the shortest link
between any two actors: http://oracleofbacon.org/
Just because a path exists, doesn’t mean you can easily
find it.
You don’t know all of the contacts whom your friends
know.
Only six people between me and ..... ??
How do businesses get benefits from the latest development of knowledge?
• Academic terms and concepts sometimes need to be translated into ‘business language’.
• People like to have FUN!!
Design activity:
SMEs mappedtheir networks
Organized by the SME in a way that makes sense to them
Geographical distance – spatial proximity
Network is local when most of contacts are
located in a close proximity.
Network is global /non-local when most of contacts are
located in a distant proximity.
Strength of ties – Relational characteristics
Strong ties are described as long-term and intense interactions between
entrepreneurs and their contacts.
Weak ties are described as infrequent and irregular
interactions between entrepreneurs and their contacts.
Heterogeneity – Social proximity
Heterogeneous means that entrepreneurs have contacts
that come from relatively diverse backgrounds.
Homogeneous means that entrepreneurs have contacts
that come from relatively similar backgrounds.
Government
Owner of a small business
Academic
Executive in a large company
Employed
Academic
Employed
Connectedness of networks – Structural characteristics
Tight or dense networks are networks in which everyone is
connected to each other.
Loose networks are networks in which not everyone knows
each other.
Benefits of networkKnowledge spillovers, reduce loneliness, etc
New information and Knowledge
Exchange of fine-grained Information and tacit knowledge, trust, etc
Access to new opportunities
Access to a variety of resources, experiences, and knowledge
Strong support in certain issues and share similar
value
Brokerage opportunities Cooperation, trust, credibility and transfer of tacit knowledge
How to make these people happy and back to their office with something real?
From practise into research
How business can benefit from their
network?
How to optimize network to reap the
benefits? How to find the
important node, the super network?
9 of 10 articles in networks use conventional techniques of data collection. Why not start something different?
- SMEs find it relevant- SMEs give the information that
we need for our research
• Guide SMEs to fill this questionnaire in an
interactive way.
• Contacts are divided into four categories:– Core contact– Contacts who help with
new ideas– Contact who could help
to test out ideas– Contact who could help
to bring ideas to market
Research on network
• Starting from my PhD work
• How do social networks influence the growth of university spin-offs?
To what extent, and under what conditions are the characteristics of social networks beneficial for growth?
• Research in Delft, the Netherlands and Trondheim, Norway (+/- 100 spin-offs)
Confused!!!!!• Network is complex!• Strong and weak ties, diversity,
geographical distance bring positive benefits to firms in different contexts.
Analyse the data collected from the workshop
Network characteristics
34
Level of interactions with contacts and
geographical distance
Level of interactions with contacts and overall networks
structure
Geographic distance and Level of interactions with contacts
Connectivity of contacts and Level of interactions with contacts
Network characteristics
•Local, mixed of strong ties, heterogeneous and loose.
Core
•Mixed of local and non-local, strong ties, heterogeneous and loose.
Create
Network characteristics
•Mixed of local and non-Local, mixed of strong and weak ties, heterogeneous and loose.
Test
•Non-Local, weak ties, heterogeneous and loose.
Market
In the workshop we worked with SMEs to…
Identify contacts that helped in the
past
Construct network for the future to solve specific problems
Future Problem
MixedPast Problem
Local, strong ties, heterogeneous and loose
Firms use different contacts to solve problems. However, the
presence of core contacts (local and strong ties) is still important.
More than one core contact always appears in the process of problem solving.
Two weeks after the workshop
SMEs receive a tailor-made
report
Be balanced, dynamic, and diverse
“The value of a social network is defined not only by who's on
it, but by who's excluded”Paul Saffo in The Economist
Thanks for your timeDr. Danny Soetanto MBA
IDEAS Research Associate