Structural Holes: The Social Structure of Competition

This work describes the social structural theory of competition that has developed from the 1970s to the 1990s. The contrast between perfect competition and monopoly is replaced with a network image of competition more closely keyed to the actual settings in which people live and work. The theory describes how the network structure of a situation offers competitive advantage to certain players. The basic element in this description 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. The distribution of structural holes in a competitive arena determines the flow of information and control benefits to certain players. Competitive advantage is a matter of access to structural holes.

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PlayerStructure Duality
Commit and Survive

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