Embeddedness and Social Networks in Economic Sociology

Ten question-and-answer flashcards covering Granovetter’s embeddedness theory, weak ties, Uzzi’s paradox, structural holes, and related concepts.

What does Granovetter’s theory of embeddedness assert about economic behavior?

Economic behavior is embedded in social networks and cannot be understood apart from the surrounding social context.

In economic sociology, what does it mean to say that economic action is “embedded”?

It means economic decisions are shaped by social relationships, trust, norms, and personal ties rather than being purely market-driven.

What are weak ties, and why are they important in social networks?

Weak ties are casual or distant social connections that provide access to novel information and opportunities across different social circles.

What is Uzzi’s paradox of embeddedness?

The idea that moderate embeddedness balances trust and flexibility, whereas excessive embeddedness can suppress innovation and adaptability.

Name two key advantages of operating within embedded networks.

They foster trust and cooperation, reducing transaction costs and facilitating learning.

List two risks associated with over-embeddedness in a network.

It can lead to groupthink, exclusion of outsiders, and resistance to change.

According to Ronald Burt, what are structural holes?

Gaps between otherwise disconnected parts of a network that create opportunities for information and control advantages.

How do brokers gain from bridging structural holes?

By accessing unique information and mediating between groups, brokers gain influence, innovation benefits, and potential control over resource flows.

Give an example of embeddedness from New York City’s garment industry.

Firms kept working with long-time partners despite cheaper alternatives because trust and established relationships outweighed simple price considerations.

How does the concept of embeddedness challenge economic rationalism?

It shows that decisions are not always made for price efficiency alone; social obligations, trust, and norms often guide behavior.