The Effects of Social Networks on Firm Performance Research Paper

The Effects of Social Networks on Firm Performance - Research Paper ExampleThe paper tells that in the field of harvest-festival development the inter organization networks can be very effective for the joint discussion about the product. Many new and small firms have omit of resources for the development, chiefly due to inexperience and a lack of goodwill. Thus as a representation of competing and grabbing a foothold in such a scenario involves bootstrapping, which involves activities for securing finances and resources. By using social networks such companies can gather finances, by construction up strong ties in the initial stages and later on idle ties as they grow big. CEOs of different firms have been known to have taken advice from outside through social networking. In this way they examine to get an outside opinion and an altogether different perspective regarding certain strategic issues. These enhance the performance of the firms. Another important aspect which is eme rging behind is the concept of a local social capital where an individual who values more of his local contacts, even though he has global contacts. This is relevant mainly in case of local entrepreneurs. Thus according to scientists, people with more and better social capital will be able to realize their goals. Ranging from contracts to building goodwill and securing finances, social capital is the priority in all types of endeavors around the globe. Social ties have been found to regulate exchanges through an informal and interpersonal way and they help to push back the limitations of a weak infrastructure, especially in the case of a financial crisis. (Sheng et al, 2011, p. 1). The study is to provide several facts and discussions in congenator to social networks and social capital and their effect on firm performance based on the following