Informal SME networks: A Bourdieu based perspective

Abstract

The aim of this thesis is to investigate the relationship between formal and informal intraorganisational networks. The notion that organisations are made up of interdependent relationships has led researchers to study more carefully the impacts that informal intraorganisational networks have on organisational life.

Using a Bourdieu-based theoretical platform, this research investigates the relationship between context and informal intraorganisational networks in small-to-medium sized organisations in a New Zealand setting. An owner-manager perspective is adopted for the study and a qualitative research design is used to investigate the fundamental issue of why the differing contextual environments of organisations should influence the informal networks that exist within organisations. A post-structuralist approach to an interpretive investigation, utilising qualitative interviews, facilitated the reporting of empirical research, and theory development.

The Bourdieu platform allows for the exploration of contextual issues using the concepts of field, habitus, and capital. Analysis of both interviews and secondary data concludes that informal intraorganisational networks differ contextually depending upon the type of organisation/industry group in which they are located. Further, elements of field such as traditions, unwritten norms, symbols, and customs also differ contextually in different organisations. Likewise, elements of habitus such as personal perceptions, levels and standards of living, and pride in work differ contextually as do elements of capital such as qualifications, skills, and the value of reputation.

By way of example and explanation regarding theoretical properties, a comparison of trades based and non-trades based organisations is undertaken in the interview analysis. The research concludes that context does matter in an investigation into informal intraorganisational networks. Furthermore, networks in trades based businesses are highly predictable, have predictable characteristics and function in a dependable manner. Conversely, networks in non-trades based businesses are less predictable, are based on the personal characteristics of the members, and behave in a less dependable manner. These properties are exposed using the Bourdieu platform.

Therefore, in terms of theory development, the results of this study suggest that the Bourdieu notions of field, habitus, and capital provide a sound theoretical platform for investigating informal intraorganisational networks. This is in sharp contrast to the positivist paradigm dominating research in the field to date.