The Efficacy And The Localization: An Analysis Of The Function Of Social Network In Transaction

As an important branch of western sociology, social network theory has developed into series of perfect analysis technology and methods. With the development of social network theory, it has been applied into the study of sociology, economy, anthropology and politics in western theory. Also it has been applied into the study of domestic politics, economy, and culture. This can embody the ethical characteristics of Chinese society, especially the particularity of action rules which based on interpersonal relations. Therefore, social network theory has an important influence on the study of Chinese current problems, and has attracted extensive attentions of the Chinese theory field .In this paper a general review about western and domestic social network theory and social capital theory has been made, including the following theories: the theory of social capital function from Coleman, social capital conception from Portes, social resource theory from Lin, the weak tie standpoint from Granovetter and the structural hole standpoint from Burt, also other concrete evidence examples and some achievements made by Chinese scholars, such as Shumingliang ,Xiaotongfei and other scholar's representative standpoints.Based on the previous study, this paper will discuss the transaction and the actions of entrepreneur in the view of social network theory and social capital theory. Series of hypotheses are been brought out in two aspects: (1) social network has an important influence on the action and performance of transaction; (2) different kinds of social networks have different influences on the transaction behavior results, the social network which suit with the formal social system will have a more positive influence on the economical performance of the entrepreneur.There have been many quantitative analysis on this problem, so we use qualitative analysis method in order to demonstrate pointviews mentioned in the hypotheses. This paper analyses three entrepreneurs: both board chairman and department manager are concerned, including both successful and failing instances. These outcomes show that the entrepreneur's social network has a strong effect on the transaction, and also demonstrate the characteristics and laws of society. In this point, this paper has achieved prospective aim and set a foundation for further study.