A probabilistic switch model of information flow in social networks: application of virtual circuits to organisational design

Abstract

Network building and exchange of information by people within networks is crucial to the innovation process. Contrary to older models, in social networks the flow of information is noncontinuous and nonlinear. There are critical barriers to information flow that operate in a probabilistic manner. New models and new analytic tools are needed for these systems. This paper introduces the concept of virtual circuits and draws on recent concepts of network modelling and design to introduce a probabilistic switch theory that can be described using matrices. It can be used to model multistep information flow between people within organisational networks, to provide formal definitions of efficient and balanced networks and to describe distortion of information as it passes along human communication channels. The concept of multi-dimensional information space arises naturally from the use of matrices. The theory and the use of serial diagonal matrices have applications to organisational design and to the modelling of other systems. It is hypothesised that opinion leaders or creative individuals are more likely to emerge at information-rich nodes in networks. A mathematical definition of such nodes is developed and it does not invariably correspond with centrality as defined by early work on networks. A probabilistic switch model of information flow in social networks 5Reference to this paper should be made as follows: Barnard, R., Kapeleris, J. and Hine, D. (2006) 'A probabilistic switch model of information flow in social networks: application of virtual circuits to organisational design', Int. at the University of California and an NHMRC R.D. Wright fellowship at the University of Queensland. He has had a stint in industry (as nucleic acids programme director at Panbio Ltd., Brisbane) and is involved in basic and applied research in academic and several industry collaborative projects in the fields of antibody engineering, infectious disease diagnosis and cancer treatment. He has filed several patents in the field of diagnostics and published more than 75 refereed papers in molecular endocrinology, molecular biology, applications of mathematics in biology and in knowledge and innovation management.John Kapeleris, holds the position of Director for Commercialisation at the Australian Institute for Commercialisation, and is adjunct Associate Professor in the Biotechnology Programme at the University of Queensland. He received his Doctorate of Biotechnology from the University of Queensland. In his early career, he worked for Queensland Medical Laboratories as Scientist both in diagnostic serology and product development.He joined Panbio Pty Ltd. in 1991 as R&D Manager and was responsible for establishing the company's R&D systems and the development of a number of products that achieved international market success. Kapeleris has also held positions as Quality Manager, Business Development Manager, Marketing Manager, VP Sales and Marketing and Deputy CEO. His interests include creativity and innovation and how this is l...

Technological alliance drivers, formation and performance: the case of Korean high-tech SMEs

“…Firms with more alliance experience are more likely to form new alliances (Gulati, 1998). Hagedoorn et al (2006) observed through analysis of 1,325 R&D alliances in the pharmaceutical and biotech industries, that firms with more R&D alliances experience tends to be located in the central node of subsequent alliance networks, has higher social status and increases probabilities to find better alliance partners (Barnard et al, 2006). Social network is a key driver to prompting firms to enter into strategic alliances, as is highlighted by Dana et al (2008) who shows that internationalisation and expanding entrepreneurial terrain of SMEs requires more expanded networks [originally termed as 'multi-polar internationalisation', see Dana et al (2008) and Wright and Dana, (2003)].…”