Is individual talent or a balanced network more important?
https://www.sciencedaily.com/releases/2019/06/190617125133.htm
A new study released by Northwestern University on June 14, 2019 indicates that balanced business networks outweigh individual talent when making risky professional decisions. This study was conducted over the course of two years (2007 to 2009) on a group of day traders. The researchers read and interpreted employees’ instant messages to draw conclusions about employees’ relationships. Then, they compared these findings to employee performance data. They discovered two conclusions: first, that workers tend to prefer balanced relationships, and second, that performance is positively correlated with balance. One possible explanation for this is that conflict within networks consumes employees’ mental energy, which diminishes productivity. Therefore, edges in individual talent are ultimately eliminated if a worker disrupts the balance of a given professional network.
This study connects to our work in class since it defines “balance” within a network by the structural balance theory, a key concept discussed in lecture. This theory states that a friend of a friend is also a friend and that an enemy of an enemy is a friend. In other words, if a network is broken up into triangular relationships, there must be three positive edges or one positive edge and two negative nodes.
Overall, this study has interesting implications when it comes to hiring new employees. Many hiring agents prioritize discovering the most intellectually promising applicants over more “personable” applicants. On the flip side, many job seekers – especially college students – focus their energies on building a resume and marketable skills. Instead, this study indicates that job seekers should focus more of their energies on improving their soft skills – particularly their ability to work in collaborative environments.