Structural Holes The Social Structure of Competition | Edition: 1
Author: Ronald Burt
publisher: Harvard University Press
publisher Date: 08/28/1995
Schools: University at Albany (SUNY)
Description: Ronald Burt describes the social structural theory of competition that has developed through the last two decades. The contrast between perfect competition and monopoly is replaced with a network model of competition. The basic element in this account is the structural hole: a gap between two individuals with complementary resources or information. When the two are connected through a third individual as entrepreneur, the gap is filled, creating important advantages for the entrepreneur. Competitive advantage is a matter of access to structural holes in relation to market transactions.