Ronald Burt describes the social structural theory of competition that has developed through the last two decades. The contrast between perfect competition and monopoly is replaced with a network model of competition. The basic element in this account 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. Competitive advantage is a matter of access to structural holes in relation to market transactions.
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Ronald S. Burt is Professor, Graduate School of Business, University of Chicago.
Structural Holes makes an important contribution to clarifying the connection between macrosociological and microsociological levels of analysis... By combining sociological theory and outstanding empirical research from different interaction contexts, Burt creates a model for sociological work in general.
--Bernard Barber, Columbia University
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