The loose relationships that bind social network users are a one of the most valuable commodities of Facebook, according to Clara Shih, author of The Facebook Era.
As individuals, Shih contends that we have two sources of personal competitive advantage: human capital and social capital. The former is the natural talents, characteristics and abilities of an individual. The later is the ability to leverage relationships with others to get things done.
According to Shih, the weak social ties created by social networks build social capital and drive an informal, but powerful, quid-pro-quo social exchange. “Individuals with greater social capital close more deals, are better respected and get higher-ranking jobs,” Shih said. “Online social networks offer access to social capital, empowering those who are well connected with private information, diverse skill sets, and others’ energy and attention.”
Online social networks make it EASIER TO ASK FOR FAVORS and HARDER TO DENY OTHERS’ REQUESTS. As a result, according to Shih, weak ties carry the greatest amount of social capital. They are low maintainence and high value.
Although the first 40 pages of The Facebook Era provides a mildly-forgettable history of digital communications and the book ends with an akward snapshot of top social sites, the middle of the book provides a wealth of keen insights from Shih, who worked in strategy and business operations at Google.
Shih discusses how social networks transform the way businesses need to sell, market, innovate, and recruit. As creator of Faceconnector (formerly Faceforce) — the first business application created for Facebook — this is a topic she knows well. As the lines blur between our personal and professional lives, companies are challenged to reach prospects and customers in new ways.
One of the most valuable contributions by Shih is a 50-page step-by-step guide to using Facebook for business. This content alone makes this 200-page, paperback tome worth Amazon’s $16.49 asking price. Topics well-covered in this portion of the book include: engaging customers, getting your message across, building & managing relationships, and corporate governance.
Shih speaks from the trenches despite an impressive academic pedegree (undergraduate/graduate degrees in computer science from Stanford and a master’s degree in Internet Studies from Oxford). While Shih’s approach isn’t wildly different than aspects covered in Groundswell and other popular social media titles, I think it’s more practical and prescriptive than most.
Blog
I added Shih’s blog to the Social Meteor website blogroll after listening to Shih speak at a Social Networks Conference in Miami Beach in January, 2009. Since that time, she’s barely blogged (five entries). Disappointed by these sparse postings, I recently removed her blog from the blogroll.
Perhaps Shih’s infrequent posts will be featured on Mashable or other popular social media sites. In case they aren’t, I’ll keep one eye open, in hopes that she’ll become a more frequent contributor when things settle down.
I’ve been following Shih on Twitter (@clarashih) for five months. She’s an intermittent Twitterer with a good mix of tips, facts, retweets and personal observations. I recommend following her on Twitter if you are a social media trend follower — Or, to learn about upcoming speaking engagements. Shih’s a good speaker, worth seeking out when she’s in your area.
Speaking of Social Capital
What if three popular social networks (Facebook, Friendster and MySpace) were three bachelor roommates living in an apartment in Santa Monica, CA?
About Troy Janisch
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