Leadership Through Network Theory

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Leadership Through
Network Theory
Tyquon Jordan
School of Health Care Administration, Capella University
BMTGT8614: Leading the Organizational System
Brenda Williams
November, 2023
Introduction to Network Theory
• Network theory, specifically within social network analysis, is a theoretical framework that
focuses on understanding how actors (such as individuals, groups, organizations, etc.) are
linked through different types of social relationships, like advice-giving, resource-sharing, or
alliance partnerships (Aguinis et al., 2011, p. 445). This theory is vital in understanding the
structure and dynamics of social networks.
• Critical constructs in network theory include concepts such as status, centrality, and structural
holes (Aguinis et al., 2011, p. 445). These constructs are used to analyze and interpret the
roles and positions of actors within a network (Aguinis et al., 2011, p. 445). For instance,
centrality relates to an actor’s importance or influence within the network (Aguinis et al.,
2011, p. 445). At the same time, structural holes refer to the gaps in a network that an actor
can exploit to gain a competitive advantage (Aguinis et al., 2011, p. 445).
Network Theory and Leadership
• Network theory establishes the shift from traditional hierarchical leadership to a more
collaborative, cross-functional team, plural leadership model that enhances team
dynamics and creative output by highlighting the importance of interconnections and
relationships and the distribution of leadership (Aguinis et al., 2011 & Flocco et al., 2021
& Grumadaitė & Jucevičius, 2022).
Managing Change in Complex Adaptive
Systems
• Embrace Non-Linear Management: Due to the need for clear causality in complex
systems, linear management methods have limited value (Grumadaitė & Jucevičius,
2022). Management actions must depend on non-linear reasoning to avoid unintended
outcomes (Grumadaitė & Jucevičius, 2022).
• Tolerate Ambiguity and Provide Clear Feedback: Leaders must tolerate uncertainty
and ambiguity while ensuring precise, transparent feedback mechanisms are established
for tracking progress and enabling learning (Grumadaitė & Jucevičius, 2022).
• Allow Freedom within Boundaries: Leaders must allow system actors freedom of
action and establish boundaries to prevent chaos, promoting self-organization and
initiative while balancing constraints (Grumadaitė & Jucevičius, 2022).
Sparking Innovation with Network
Theory
• Fostering innovation in complex organizations using network theory requires a deep
comprehension of the network’s dynamics, a leadership style that balances freedom and
direction, and a holistic approach to network analysis that considers multiple levels and
perspectives within the organization (Aguinis et al., 2011 & Flocco et al., 2021 &
Grumadaitė & Jucevičius, 2022).
Case Studies: Network Theory in Action
• In a case study at a long-term care facility in Nova Scotia, Canada, researchers used Social Network
Analysis (SNA) to investigate the effects of decentralized leadership in healthcare teams (Cara-Lynn
Scheuer et al., 2023). This setting compared teams with formal decentralized leaders and those reporting
to centralized managers. The study focused on how these different leadership structures influenced
knowledge sharing and work-hindrance behaviors within the teams (Cara-Lynn Scheuer et al., 2023).
• The results showed that teams with decentralized leadership experienced improved knowledge sharing,
highlighting the positive impact of such leadership on team communication and collaboration (CaraLynn Scheuer et al., 2023). However, the effectiveness of decentralized leaders in reducing negative
behaviors like work hindrances relies on the quality of leader-member relationships (Cara-Lynn Scheuer
et al., 2023). This finding underscores the importance of strong leader-member connections in
maximizing the advantages of decentralized leadership in complex healthcare settings (Cara-Lynn
Scheuer et al., 2023).
Conclusions and Future Implications
• In modern organizations, leadership is increasingly defined by the ability to manage
complex networks rather than hierarchical structures. Leaders must adopt non-linear
approaches, comfortably navigate ambiguity, and balance autonomy and strategic
direction to drive innovation. By understanding and utilizing network theory constructs
such as centrality and structural holes, they can identify opportunities for innovation
across both individual and broader network levels.
• Future leadership will require adaptability, emphasizing cross-functional collaboration
and data-driven awareness to navigate organizational complexities. The ability to build,
maintain, and effectively leverage networks will be essential, as will establishing
transparent communication channels. These capabilities will allow leaders to effectively
guide their organizations through the complex and uncertainty of the interconnected
environments, ensuring continuous growth, adaptability, and innovation.
References
• Aguinis, H., Boyd, B. K., Pierce, C. A., Short, J. C., Moliterno, T. P., & Mahony, D. M. (2011). Network Theory
of Organization: A Multilevel Approach. Journal of Management, 37(2), 443-467. https://doiorg.library.capella.edu/10.1177/0149206310371692
• Cara-Lynn Scheuer, Voltan, A., Kumanan, K., & Chakraborty, S. (2023). Exploring the impact of
decentralized leadership on knowledge sharing and work hindrance networks in healthcare
teams. Journal of Management and Organization, 29(1), 139-158. https://doi.org/10.1017/jmo.2020.37
• Flocco, N., Canterino, F., & Cagliano, R. (2021). Leading innovation through employees’ participation: Plural
leadership in employee-driven innovation practices. Leadership, 17(5), 499518. https://doi.org/10.1177/1742715020987928
• Grumadaitė, K., & Jucevičius, G. (2022). Strategic Approaches to the Development of Complex Organisational
Ecosystems: The Case of Lithuanian Clusters. Sustainability, 14(23), 15697.
https://doi.org/10.3390/su142315697