The impact of networking

Networking is unavoidable that people are also interacting with each other, especially in the modern era when no individual can survive without others’ help. Networking can help people share each other’s ideas and influence each other. Some firms’ CEOs are also board directors of other companies, this might make them be able to influence other companies, especially when other companies are complementary or subside. They can change other companies’ strategies, and they can also change their own firms’ strategies. Such environment could potentially lower competition levels as well as transition costs.

It is great to see transition costs become lower but lowering competition levels may not be a good sign for ordinary customers. To study the impact of networking on other factors, it is important to graph networking in order to see how people are connected. Networking has an important fact that once someone has an incredibly influence over others (in other words, his or her networking power is huge), more people are connected to him or her, while the people who are closer to him or her are more influential than the people who are less close to him or her. Of course, people can connect to other influential people, but the number of influential people is very limited comparing with the size of the entire population.

When picturing networking graph, it might be possible to have a few influential people within a circle while many more less significant people surround them.