Page - (000085) - in Knowledge and Networks

76 settings. Even in cases where family connections extend internationally through emigrant entrepreneurs, external knowledge tends to confine itself to some groups in the family rather than to diffuse throughout the locale (Henn, 2012). Third, family networks as hierarchical structures foster knowledge diffusion rather than knowledge creation. Unlike other social connections, family ties entail an imbalanced distribution of power between individuals, usually in favor of seniors and males in traditional communities. Economic knowledge within families thus usually flows either horizontally (across families) by means of marriage bridges or vertically from the old to the young (Sussman, 1959). In that kind of learning pro- cess, the roles of agents as knowledge transmitters or receivers are assigned ex ante by their positions in family structures. Knowledge thereby tends to diffuse in a unidirectional manner in family networks. Because family ties are strong, such knowledge diffusion processes can be quick; because family networks are stable, the variety of knowledge in local communities can shrink rapidly. In contrast to this process of knowledge diffusion, knowledge creation comes from collision of different ideas and from reflection on traditional thinking. Knowledge creation requires dynamic interaction of individuals, which is inconsis- tent with the structured flows of knowledge in family networks. Although useful for technology diffusion at the individual or community level, family networks may therefore be unhelpful to knowledge creation. If family ties do little to build an innovative regional ecosystem, how can devel- oping regions that industrialize through family-based learning transform into a knowledge economy? Another basic kind of social network, friendship ties, will gain increasing significance in the transformation process because friendship net- works constitute a more open and dynamic structure for learning than family ties do (see Table 4.1). Unlike family ties created by marriage and birth, friendship is built from a sharing of common experience, an agreement on common rules, and an attraction between personalities. Friends are chosen independently, made through mutual acceptance, and endorsed by personal trust. Friendships are thus an autono- mous association of individuals, open in structure and flexible in duration and strength. The easiest way to make friends is to be introduced by common friends. Granovetter (1973) argues this point by demonstrating the closeness tendency of strong friendship ties. In friendship networks only weak ties with acquaintances can become bridges, which elicit new information and opportunities. Therefore, hetero- Table 4.1 Comparison of family and friendship networks Dimensions Family ties Friendship networks Formation Marriage and birth Common experience, personality Structure Hierarchical, exclusive Open, inclusive Duration Lifelong Flexible Strength Strong Strong or weak Knowledge Homogenous Heterogeneous Power Patriarchal, imbalanced Equal, reciprocal Action Involuntary Voluntary P. Li