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Structural fold
Structural folding is the network property of a cohesive group whose membership overlaps with that of another cohesive group.〔De Vaan, M., Stark, D., & Vedres, B. (2014). Game Changer: The Topology of Creativity. American Journal of Sociology.〕 The idea reaches back to Georg Simmel's argument that individuality itself might be the product of unique intersection of network circles.〔Simmel, Georg. 1922 (). Conflict and the Web of Group Affiliations, translated and edited by Kurt Wolff. Free Press: Glencoe, IL, USA〕
==Network Structures in the Business World==
It has been proposed that successful firms often cluster together in cohesive groups, as dense ties among the group members reduce transaction cost by providing a basis for trust and coordination amongst the firms.〔Useem, Michael. (1980) "Corporations and the Corporate Elite" Annual Review of Sociology 6:41-77〕〔Uzzi, B. (1997). Social Structure and Competition in Interfirm Networks. Administrative Science Quarterly, 447-504.〕 Cohesive ties also enable the firms to implement projects beyond their capacity and cushions them against great uncertainty 〔Granovetter, Mark (2005) "Business Groups and Social Organisations" p429-450 Handbook of Economic Sociology , 2nd ed,Edited by Neil Smelsner and Richard Swedberg, Princeton, N.J. Princeton University Press, New York: Russel Sage〕
However, another logic suggests that business groups might choose to forgo high density within the group in favour of maintaining some weaker ties to other firms outside the group. This way firms can reduce redundant ties and form long-distance links to other firms who can provide novel information to them.〔Burt, R. (1992). Structural Holes. Cambridge: MA Harvard University Press〕 This logic rests on the assumption that the conservatizing strategy of in-group cohesion is maladaptive as it risks locking the businesses into early success and strategies, which in the absence of new information can easily become detrimental in a rapidly changing business environment.
A third, different, strategy would be to combine the benefits of the previous two. Such solutions can be termed either “closure and brokerage” or “cohesion and connectivity” and the benefits of the complementarity of these distinctive network features is common to them, especially for entrepreneurship. Actors at structural folds are multiple insiders, benefiting from dense cohesive ties that provide familiarity with the operations of the members in their group. However, due to being part of more than one group they also have access to diverse information. This combination of familiarity and diversity facilitates innovation and creative success through recombining resources.〔Vedres, B., & Stark, D. (2010). Structural Folds: Generative Disruption of in Overlapping Groups. American Journal of Sociology, 1150-1190.〕
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