Publication Type

Journal Article

Version

acceptedVersion

Publication Date

9-2018

Abstract

We study the relationship between choice homophily in instrumental relationships and individual performance in knowledge-intensive organizations. Although homophily should make it easier for people to get access to some colleagues, it may also lead to neglecting relationships with other colleagues, reducing the diversity of information people access through their network. Using data on instrumental ties between bonus-eligible employees in the Equity Sales and Trading division of a global investment bank, we show that the relationship between an employee’s choice of similar colleagues and her performance is contingent on the position this employee occupies in the formal and informal hierarchy of the bank. More specifically, homophily is negatively associated with performance for bankers in the higher levels of the formal and informal hierarchy, whereas the association is either positive or nonexistent for lower hierarchical levels.

Keywords

homophily, social networks, social capital, knowledge workers, performance

Discipline

Business | Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Organization Science

Volume

29

Issue

5

First Page

912

Last Page

930

ISSN

1047-7039

Identifier

10.1287/orsc.2018.1208

Publisher

INFORMS

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1287/orsc.2018.1208

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