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Social Network Analysis & User Innovation An introduction to methodology and example Paul M. Di Gangi, Ph.D. Global Management & Strategy Western Carolina University

Social Network Analysis & User Innovations

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High-level introduction of social network analysis technique for a professional development workshop at Western Carolina University.The purpose of this presentation was to introduce faculty to networks and social network analysis. A brief sample of research was also included to demonstrate key points.

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Page 1: Social Network Analysis & User Innovations

Social Network Analysis & User InnovationAn introduction to methodology and example

Paul M. Di Gangi, Ph.D.Global Management & Strategy

Western Carolina University

Page 2: Social Network Analysis & User Innovations

Presentation StructureStart

Finish

Overview of Networks & Social Network Analysis

Applications

Questions

Example of Research in Progress

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What is a Network?

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Network

The social structure composed of nodes that are connected by attributes.

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Web of Group Affiliations

Georg Simmel

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Getting a Job&

Strength of Weak Ties

Mark Granovetter

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Strength of Strong Ties

David Krackhardt

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I am a product of my...network

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What is Social Network Analysis (SNA)?

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Social Network Analysis (SNA)

A methodology used to map a social network and determine the

relevance of specific nodes as well as the overall relationships present

within the network.

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X

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The Grapevine

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How can we measure people’s connections?

DegreeEigenvectorBetweenessCloseness

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Attribute-based

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What are the common applications we can use?

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NETDRAW

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Siena

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Any examples for how we can use SNA in our research?

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Follow the Leader: Using Social Network Analysis to Identify Influential

Users in a User Innovation Community

Paul M. Di GangiWestern Carolina University

Molly Wasko University of Alabama at Birmingham

Presented previously @ International Social Network Analysis Sunbelt Conference

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Shifting Sources of Value• Open Business Model

– Competitive advantage through leveraging external resources (Chesborough, 2003)

– Permeable organizational boundaries– Redefinition of acceptable sources of value and

knowledge

• Potential Sources of Value– Users as an organizational resource (Di Gangi &

Wasko, Forthcoming; von Hippel, 1988; 2005)• User-generated innovations (UGIs)

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“Distributed groups of individuals focused on solving a general problem

and/or developing a new solution supported by computer-mediated

communication.” (Dahlander & Wallin, 2006 p. 1246)

User Innovation Community

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Initial Study

ANOVA– 11 Adopted Ideas– 10 Not Adopted, Most

Popular Ideas

Variable Mean Std Dev F Sig.Appropriability 

Adopted 3.19 0.97 0.000 0.991Not Adopted 3.19 1.14    

Complementary Assets

Adopted 8.01 1.19 0.626 0.439Not Adopted 7.63 1.04    

Develop New Capability

Adopted 5.93 1.25 0.361 0.555Not Adopted 5.55 1.64    

Market Value 

Adopted 6.50 1.16 1.600 0.221Not Adopted 5.84 1.23    

Return on Investment

Adopted 5.76 1.12 0.039 0.846Not Adopted 5.67 1.07    

Total Votes 

Adopted 32,894 45,133 4.096 0.057Not Adopted 61,939 31,287    

Total Comments 

Adopted 257 441 1.108 0.306Not Adopted 186 112    

Number Unique Users

Adopted 169 283 1.450 0.243Not Adopted 144 89    

Community Age 

Adopted 83.18 34.97 4.595 0.045Not Adopted 118.50 24.49    

Di Gangi and Wasko (2009) 

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Implementing Considering Rejected No Status Update

February 2007

Size by # Ideas Contributed

Adopted ideas appear to be interconnected based on the individuals that participated

during the idea’s development.

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RQAre specific types of users more successful than

others at getting ideas adopted by the organization?

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Social Capital Theory“Any aspect of social structure that creates value and facilitates the actions of the individuals within that social structure” (Coleman, 1990; Siebert et al., 2001)

– An individual’s network of relationships (Nahapiet & Goshal, 1998)

– Access to information (Burt, 1992; Granovetter, 1979)

– Ability to influence the innovation process (Di Gangi & Wasko, 2009; Siebert et al., 2001)

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What types of users exist?• Possess unique,

technical knowledge (Lüthje, 2004; von Hippel, 1988)

• Play an early role in development activities (Jeppesen & Frederiksen, 2006; Rogers, 2003)– e.g., Idea generation

• Possess strong reputations within their communities (Morrison et al., 2004)

(Rogers, 2003)

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What types of users exist?• Possess unique,

technical knowledge (Lüthje, 2004; von Hippel, 1988)

• Play an early role in development activities (Jeppesen & Frederiksen, 2006; Rogers, 2003)– e.g., Idea generation

• Possess strong reputations within their communities (Morrison et al., 2004)

(Rogers, 2003)

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Study Site

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Study Site

Founded in January 200715,556 Ideas Contributed91,813 Comments Posted

438 Implemented Ideas by Dell

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Methodology• Independent Variables

– Social Butterflies• Total Comments / Total

Ideas Participated In– Idea Makers

• Total Comments to Contributed Ideas / Total Ideas Contributed

– Influencers• Centrality measure

– Leaders• Interaction-based

• Dependent Variables– Idea Status

• Number of Ideas where Action was Taken by Dell (Composite Value)

• Analysis Technique– Hierarchical Linear

Regression• Model 1 – Direct• Model 2 – 2 Way

Interactions• Model 3 – 3 Way

Interaction

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VariablesJanuary-February March April

Beta Sig. Beta Sig. Beta Sig.(Constant) 0.015 0.621 0.009 0.869 0.000 0.993Social Butterflies -0.010 0.813 -0.289 0.278 -0.261 0.001Idea Makers 0.084 0.335 0.405 0.000 0.067 0.288Influencers -0.030 0.491 0.082 0.571 -0.220 0.167Butterflies X Influencers -0.016 0.644 0.004 0.973 0.393 0.009Idea Makers X Influencers -0.566 0.001 -0.285 0.001 -0.183 0.180Leaders 0.718 0.000 0.030 0.786 0.379 0.026

Results

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Limitations• Generalizability

– Dell IdeaStorm was one of the first UICs introduced by an organization

• UIC developed by SalesForce.com– Sites Built on Platform Since IdeaStorm

• Network Solutions and Starbucks– Sites Built on Similar Platforms Since

IdeaStorm• Brightidea (Platform Provider), Change.org, Emerson,

IdeaBlob, and BrainStorm

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Practical Contributions• Managing Absorptive Capacity

– Following the leaders in an organization’s UIC

• Leveraging a Volunteer Workforce– Improve the efficiency and effectiveness of an organization’s

UIC and organizational responses to UGIs

• Identifying Influential Users and potentially adoptable ideas in a UIC– Social network analysis

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Questions?

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Thank You for ListeningContact @ [email protected]