Anna Stafsudd

Small World Sweden: The Importance of Corporate Networks


The purpose of this project is to analyze networks between the owners and directors of Swedish public corporations, as well as their antecedents and consequences. The perspective used here will be relatively new and is called small worlds. It was developed as an answer to the problem that, despite social networks being assumed to be important, the relatively few relations in corporate networks (i.e. density) showed the opposite. In accordance with the small worlds' perspective, corporations' local relations (i.e. clusters) were then studied as well as how closely related corporations were to each other. These values were compared to theoretically computed ones, which could be assumed to arise hypothetically in a network of the same size and number of relations. Findings showed that corporations tended to gather in clusters to a far larger degree than would be expected by chance, i.e. networks with small world properties. This project is part of a larger global one, with the purpose of comparing different countries' network structures, by means of utilizing the possibilities that the small world perspective allows for in studying both the antecedents and consequences of such networks. As for Sweden, it has been suggested that the vitality of its financial markets is to be explained by close informal networks. Preliminary findings confirm this, as Sweden shows higher small worlds' values for owner networks than for the rest of the world, with the exception of Germany, a country known for its corporate networks.
Grant administrator
Lunds universitet
Reference number
P2006-1080:1-E
Amount
SEK 880,000
Funding
RJ Projects
Subject
Business Administration
Year
2006