Burt's theory and core logic
In Structural Holes (1992) the sociologist Ronald Burt analyzed the social structure of competition. If two of my contacts do not know each other, a "structural hole" separates them, and I become the only channel between them: a broker. Burt argued brokers enjoy two advantages. Information benefits come from receiving non-redundant information early from different groups; control benefits come from playing one side against the other to secure better terms. The latter draws on Georg Simmel's notion of the tertius gaudens, the third who benefits. The theory extends Granovetter's strength of weak ties, arguing that what matters is less a tie's strength than whether it spans a hole. Burt proposed measures such as effective size and constraint, closely related to Freeman's (1977) betweenness centrality.
Brokerage versus closure: the social capital debate
James Coleman (1988) argued the opposite: closed networks in which members are densely connected strengthen trust and norms and so create social capital. In Brokerage and Closure (2005) Burt synthesized the two views: brokerage across holes outside a group yields new ideas and opportunities, while closure inside a group supports execution and cooperation. Empirically, Burt (2004) reported that managers in a US electronics firm who spanned structural holes produced better ideas and received higher evaluations and pay. Ahuja (2000), studying collaboration networks in the chemicals industry, found that more structural holes could actually be associated with lower patent output, showing the effect depends on conditions.
Limits and recent research
The value of structural holes varies with context. Obstfeld (2005) found that a tertius iungens orientation, introducing disconnected people to each other rather than exploiting the gap, favored involvement in innovation, and Fleming et al. (2007) argued that brokerage helps generate ideas but can hinder their development and diffusion. Xiao and Tsui (2007) reported that in Chinese high-tech firms with strongly collectivist cultures, brokerage advantages weakened or disappeared. Aral and Van Alstyne (2011) identified a "diversity–bandwidth trade-off": the more diverse one's contacts, the less information flows through each tie. Critics also note that brokers who hoard information can create information asymmetry and trust problems.
FAQ
- How do structural holes differ from weak ties?
- Weak ties focus on the strength of a relationship; structural holes focus on network position, whether a relationship bridges otherwise disconnected groups. Burt argued that weak ties usually help precisely because they span holes.
- Is bridging structural holes always advantageous?
- No. Its effects depend on culture, industry and task, and where execution and cooperation matter most, dense closed networks can be more beneficial.
Sources reviewed: 2026-10-26
References
- Burt, R. S. (1992). Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press.
- Burt, R. S. (2004). Structural holes and good ideas. American Journal of Sociology, 110(2), 349–399.
- Burt, R. S. (2005). Brokerage and Closure: An Introduction to Social Capital. Oxford: Oxford University Press.
- Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360–1380.
- Simmel, G. (1908). Soziologie: Untersuchungen über die Formen der Vergesellschaftung. Leipzig: Duncker & Humblot.
- Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95–S120.
- Freeman, L. C. (1977). A set of measures of centrality based on betweenness. Sociometry, 40(1), 35–41.
- Ahuja, G. (2000). Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45(3), 425–455.
- Obstfeld, D. (2005). Social networks, the tertius iungens orientation, and involvement in innovation. Administrative Science Quarterly, 50(1), 100–130.
- Fleming, L., Mingo, S., & Chen, D. (2007). Collaborative brokerage, generative creativity, and creative success. Administrative Science Quarterly, 52(3), 443–475.
- Aral, S., & Van Alstyne, M. (2011). The diversity-bandwidth trade-off. American Journal of Sociology, 117(1), 90–171.
- Xiao, Z., & Tsui, A. S. (2007). When brokers may not work: The cultural contingency of social capital in Chinese high-tech firms. Administrative Science Quarterly, 52(1), 1–31.
