Bridge decay

This paper is about three points: network bridges are critical to the advantage known as social capital, bridges relative to other kinds of relationships show faster rates of decay over time, and the faster decay in bridges has implications for the stability of social capital. A bridge connects people not otherwise connected; in other words, it spans a structural hole in the surrounding organization. I have four years of data on the social networks of bankers in a large organization. I show that bridge relations are associated with more positive peer reputations and higher compensation, but decay at an alarming rate. Nine in ten bridges this year are gone next year. I describe factors in the rate of decay, find slower decay in the networks of bankers experienced with bridge relationships, and conclude that social capital accrues to those who already have it. An appendix is included on the kinked decay functions observed in contractual bridge relationships. Author Note: The work reported was supported by the Institute Européen d'Administration d'Affaires (INSEAD) and the University of Chicago Graduate School of Business.