Reputation and Trust (aka “Network Closure")
An interesting read relating structural holes and network closure. Structural holes are gaps between groups. They offer many opportunities for innovation. Network closure, the counterpart to structural holes, represents the level of trust within groups. Here's an excerpt: "The power of reputation rests on the idea of network closure, which is the degree to which everyone knows everyone else in a network. In a subgroup or "clique" where everybody knows everybody else, reputation can have currency much more powerful than money. Promises within the group can be trusted because the consequences of breaking a promise would be catastrophic. Anyone who mistreated a fellow member in such a group would quickly find himself ostracized by the entire group, his reputation ruined." [thanks elearnspace]Permalink | Wednesday, July 14, 2004
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