investigating informal social networks in construction artisans in the western cape by martin ...

140 Pages·2013·2.63 MB·English

INVESTIGATING INFORMAL SOCIAL NETWORKS IN CONSTRUCTION ARTISANS
IN THE WESTERN CAPE

BY
MARTIN LEKARAPA
Dip. Const. Studies (LP), BSc. Const. Studies (UCT), BSc. Hons. (QS) (UCT), PrQS, PMAQS

SUPERVISOR: PROFESSOR DAVID ROOT

OCTOBER 2013

A dissertation submitted in fulfillment of the requirements for the Masters degree of Master of Science in
Building in the School of Construction Economics and Management, Faculty of Engineering and Built
Environment, The University of Witwatersrand.
ABSTRACT
Informal social networks among the construction craftworkers from various ethnic groups create
barriers of entry to crafts men entering the Constuction Industry in the Western Cape, South
Africa. This study aimed to investigate how informal social networks found in three construction
sites in an ethnically diverse area, can bring economic exclusions and promote inequality in terms
of accessibility to social economic resources. Data was collected using Social Network Analysis
(SNA) method, through the egocentric approach. Data analysis was done with the use of the social
network analysis program UCINET. Findings from the three case studies showed that the
accessibility of job information is through the informal social networks formed among the
construction artisans, foremen including construction managers. Moreover, artisans from these
sites were mostly friends and neighbours of the same race which suggests that their social relations
facilitated the transfer of information concerning job opportunities. These kinds of relations
transmit limited information. As much as the informal social networks can be advantageous, they
create barriers of entry to those who are not part of these networks or barriers to skills acquisition
to those who do not possess craft skills. These exclude those who do not belong to these
advantageous networks. Further findings showed that a particular trade was dominated by a
particular race. Also, minimal interaction was observed among different races suggesting a
hindrance of transfer of information about job opportunites across ethnic groups. It is
recommended that the artisans need to interact with others from different races as to broaden their
networks and also to have multiplex networks. The government also needs to implement new
policies which can enable people to have equality in the accessbility of social resources and
economic opportunities.

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ACKNOWLEDGEMENTS

I would like to pass my sincere acknowlwdgements to the following vital people;

Firstly, I thank my supervisor Prof. David Root for his helpful guidance, assistance, advice,
patience and support during the course of this research.

A particular special mention goes to Polo Lemphane who has been of helpful in proof reading,
support, motivation and not giving up on me.

Thanks to artisans, foremen and construction managers who gave up their valuable time, effort
and their cooperation in answering the questionaires, not leaving behind the construction
enterprises who gave me permission to interview their workers.

Finally, I thank my mother, my brother and his wife for the motivation, encouragement and
support.

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TABLE OF CONTENTS

ABSTRACT ................................................................................................................................ i
ACKNOWLEDGEMENTS ............................................................................................................. ii
TABLE OF FIGURES.................................................................................................................. vii
CHAPTER ONE: INTRODUCTION ............................................................................................1
1.0 INTRODUCTION ............................................................................................................................................................. 1
1.1 Problem Statement............................................................................................................................................................. 4
1.2 Primary Research Question ............................................................................................................................................ 5
1.3 Key Research Questions .................................................................................................................................................. 5
1.4 Subsidiary Research Questions ..................................................................................................................................... 5
1.5 Aim ......................................................................................................................................................................................... 5
1.6 Objectives of the Research.............................................................................................................................................. 5
1.7 Proposition to be explored .............................................................................................................................................. 6
1.8 Research Methodology .................................................................................................................................................... 6
1.9 Scope and limitation ......................................................................................................................................................... 6
1.10 Proposed Structure of the dissertation ...................................................................................................................... 6
CHAPTER TWO: THEORY OF SOCIAL NETWORKS ....................................................................7
2.0 INTRODUCTION ............................................................................................................................................................. 7
2.1 INFORMAL SOCIAL NETWORKS.......................................................................................................................... 7
2.1.1 Formation of Social Networks ...................................................................................................................................... 8
2.1.2 Structure of Social Networks ...................................................................................................................................... 10
2.1.3 Characteristics of Social Networks ......................................................................................................................... 13
2.1.4 Types of Social Network Ties ..................................................................................................................................... 14
2.1.5 Types of Personal Relationships ............................................................................................................................... 16
2.1.6 The Role of Informal Social Networks in Gaining Employment ................................................................. 17
2.1.7 Consequences of Informal Social Networks in Job Search ........................................................................... 18
2.1.8 Bridging Social Networks to gain better Resource Opportunities ............................................................. 19
2.1.9 Stability of Social Networks in Organisations .................................................................................................... 20
2.1.10 Informal Social Networks in the Labour Markets ........................................................................................... 21
2.2 SUPPLY NETWORKS THEORY ............................................................................................................................ 22
2.2.1 Classification of Supply Networks ........................................................................................................................... 23
2.2.2 Factors causing Complexity in Supply Networks .............................................................................................. 24
2.2.3 Management of Supply Networks ............................................................................................................................. 27

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2.3 SUPPLY CHAIN AND SOCIAL NETWORKS .................................................................................................. 29
2.3.1 The Primary Issues in Supply Chain and Social Networks ........................................................................... 29
2.3.2 The Primary Issues in Supply Chain ....................................................................................................................... 29
2.3.3 The Primary Issues on Social Networks ................................................................................................................ 30
2.3.4 Merging Supply Chains and Social Networks ..................................................................................................... 31
2.4 CONCLUSION ............................................................................................................................................................... 33
CHAPTER THREE: SOCIAL NETWORKS IN THE CONSTRUCTION INDUSTRY .......................... 34
3.0 INTRODUCTION .......................................................................................................................................................... 34
3.1 THEORIES THAT EXPLAIN CONSTRUCTION INDUSTRY .................................................................. 34
3.2 THE NATURE OF THE CONSTRUCTION INDUSTRY .............................................................................. 34
3.3 THE VALUE OF SUPPLY CHAIN WITHIN THE CONSTRUCTION INDUSTRY ........................... 37
3.4 SUPPLY CHAIN IN A CONSTRUCTION PROJECT ..................................................................................... 40
3.5 THEORIES OF MANAGEMENT ............................................................................................................................ 42
3.6 THE STRUCTURE OF CONSTRUCTION LABOUR FORCE .................................................................... 44
3.7 METHODS OF SEEKING WORK USED BY CONSTRUCTION ARTISANS ..................................... 45
3.8 BARRIERS OF ENTRY INTO THE CONSTRUCTION INDUSTRY ....................................................... 48
3.9 CONCLUSION ............................................................................................................................................................... 49
CHAPTER FOUR: EXPLORING THE THEORETICAL CONCEPTS OF SOCIAL CAPITAL AND
INTERPERSONAL TRUST .......................................................................................................... 50
4.0 INTRODUCTION .......................................................................................................................................................... 50
4.1 THEORY OF SOCIAL CAPITAL ........................................................................................................................... 50
4.1.1 The Theoretical Concepts of Social Capital ........................................................................................................ 51
4.1.2 The Different Types of Social Capital .................................................................................................................. 55
4.1.3 The Value of Social Capital ..................................................................................................................................... 56
4.1.4 Comparison of Social Capital with other Capitals ............................................................................................ 57
4.1.5 Social Capital within South African Communities .......................................................................................... 57
4.2 INTERPERSONAL TRUST IN SOCIAL NETWORKS .................................................................................. 58
4.2.1 What is Trust? .............................................................................................................................................................. 58
4.2.2 Concepts of Trust: Identity, Image and Reputation .......................................................................................... 59
4.2.3 Theory of Trust ............................................................................................................................................................ 61
4.2.4 Three-Dimensional Approach to Trust ................................................................................................................. 62
4.2.5 The Relationship between Trust and Social Capital ........................................................................................ 63
4.2.6 The Role of Trust in Relationships ........................................................................................................................ 64
4.3 SOCIAL CAPITAL AMONG CONSTRUCTION ARTISANS ..................................................................... 65
4.4 CONCLUSION ............................................................................................................................................................... 65

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CHAPTER FIVE: RESEARCH METHODOLOGY AND METHOD SELECTION ................................. 66
5.0 INTRODUCTION .......................................................................................................................................................... 66
5.1 SOCIAL NETWORK ANALYSIS........................................................................................................................... 67
5.1.1 Evolution of Social Network Analysis ................................................................................................................. 67
5.2. CASE STUDY................................................................................................................................................................ 69
5.3 DATA COLLECTION ................................................................................................................................................. 69
5.4 PROBLEMS ASSOCIATED WITH SOCIAL NETWORK DATA COLLECTION .............................. 71
5.5 POPULATION ................................................................................................................................................................ 71
5.6 SAMPLE ........................................................................................................................................................................... 71
5.7 UNIT OF ANALYSIS .................................................................................................................................................. 72
5.8 DATA ANALYSIS ........................................................................................................................................................ 72
5.9 RESEARCH ETHICS ................................................................................................................................................... 73
5.10 VALIDITY ..................................................................................................................................................................... 73
5.11 CONCLUSION ............................................................................................................................................................. 74
CHAPTER SIX: DATA PRESENTATION AND ANALYSIS ............................................................. 75
6.0 INTRODUCTION ......................................................................................................................................................... 75
6.1 SOCIAL NETWORK ANALYSIS METHODS .................................................................................................. 75
6.1.1 Graph Models ................................................................................................................................................................... 75
6.1.2 Matrix Models .................................................................................................................................................................. 76
6.2 PRESENTATION AND ANALYSIS OF DATA ................................................................................................ 76
6.3 THE SURVEY QUESTIONS .................................................................................................................................... 79
6.4 CONSTRUCTION OF THE SOCIOGRAM ......................................................................................................... 84
6.4.1 Matrix for Site 1 .......................................................................................................................................................... 84
6.4.2 Sociogram for Construction Site 1 ......................................................................................................................... 84
6.4.3 Data Presentation for Construction Site 2 – Matrix ......................................................................................... 86
6.4.4 Sociogram for Construction Site 2 ......................................................................................................................... 86
6.4.5 The Matrix Data for Construction site 3 .............................................................................................................. 87
6.4.6 The Sociogram for Construction Site 3 ................................................................................................................ 88
6.5 CONCLUSION ............................................................................................................................................................... 90
CHAPTER SEVEN: DISCUSSION OF THE RESULTS ................................................................... 91
7.0 INTRODUCTION ......................................................................................................................................................... 91
7.1 SOCIAL NETWORKS AS ALLEVIATION OF UNEMPLOYMENT ....................................................... 91
7.2 SOCIAL CAPITAL IN SAME ETHNIC GROUP NETWORKS .................................................................. 91
7.3 LOCATION EXCLUDES OTHER ETHNICALLY DIFFERENT ARTISANS ...................................... 92
7.4 ADVANTAGES OF BEING FRIENDS WITH THE FOREMAN ................................................................ 92

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7.5 CONCLUSION ............................................................................................................................................................... 92
CHAPTER EIGHT: CONCLUSIONS AND RECOMMENDATIONS FOR FUTURE PRACTICE ............. 94
8.0 INTRODUCTION .......................................................................................................................................................... 94
8.1 REVISITING THE RESEARCH PROBLEM AND OBJECTIVES ............................................................. 94
8.2 ANSWERING THE RESEARCH QUESTIONS ................................................................................................ 95
8.3 ANSWERING THE SUBSIDIARY RESEARCH QUESTIONS .................................................................. 96
8.4 CONCLUSTIONS ........................................................................................................................................................ 96
8.4 CONSEQUENCES OF THE FINDINGS ............................................................................................................... 97
8.5 RECOMMENDATIONS ............................................................................................................................................. 97
8.6 AREAS OF FURTHER STUDY ............................................................................................................................. 98
8.7 AUTHORS REFLECTIONS ON THE RESEARCH ......................................................................................... 98
APPENDIX 1 – SURVEY AND INTERVIEW QUESTIONS ............................................................... 99
APPENDIX 2 – MATRIX DATA FOR SITE 1 ............................................................................... 101
APPENDIX 3 – MATRIX DATA FOR SITE 2 ............................................................................... 102
APPENDIX 4 – MATRIX DATA FOR SITE 3 ............................................................................... 103
REFERENCES ......................................................................................................................... 110

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TABLE OF FIGURES
FIGURE 1 SPARSE EGO NETWORK (MANY STRUCTURAL HOLES) AND DENSE EGO NETWORKS (FEW HOLES), BORGATTI
AND LI 2009: 9) ........................................................................................................................................................................................ 12
FIGURE 2 TYPOLOGY OF TYPES OF TIES AMONG PERSONS STUDIED IN THE SOCIAL NETWORK LITERATURE (BORGATTI
AND LI 2009: 3) ........................................................................................................................................................................................ 14
FIGURE 3: BUSINESS RELATIONSHIPS AND NETWORKS - A FOCAL FIRM PERSPECTIVE (MOLLER AND HALINEN, 1999)
26
FIGURE 4: SUPPLY NETWORK AND A SUPPLY CHAIN, (SIMON ET AL., 2007:19) ....................................................................... 30
FIGURE 5: INFORMATION EXCHANGE NETWORKS, (HANNEMAN AND RIDDLE, 2005) ............................................................ 31
FIGURE 6: TYPICAL GENERIC NETCHAINS (LAZZARINI ET AL. 2001:8) ........................................................................................ 32
FIGURE 7: SERIAL /SEQUENTIAL INTERDEPENDENCY ....................................................................................................................... 38
FIGURE 8: POOLED INTERDEPENDENCY ................................................................................................................................................. 39
FIGURE 9: RECIPROCAL INTERDEPENDENCY ........................................................................................................................................ 39
FIGURE 10: CONSTRUCTION SUPPLY CHAIN, KOSKELA (2000: 173) ............................................................................................ 40
FIGURE 11 REALISTIC RELATIONSHIP AMONG IDENTITY, IMAGE AND REPUTATION (SMELTZER, 1997:44) ................... 60
FIGURE 12 TRUST AS A MEDIATING VARIABLE (SMELTZER, 1997:44) ......................................................................................... 60
FIGURE 13 STRONG AND WEAK TIE NETWORK MEMBERS IN SITE 1 ............................................................................................... 79
FIGURE 14 STRONG AND WEAK TIE MEMBERS IN SITE 2 .................................................................................................................... 80
FIGURE 15 STRONG AND WEAK TIE MEMBERS IN CONSTRUCTION SITE NO. 3 ............................................................................. 80
FIGURE 16 STRONG AND WEAK TIE MEMBERS IN ALL SITES (1, 2 & 3) ........................................................................................ 81
FIGURE 17 INTERACTION METHODS AMONG ARTISANS IN SITE 1 ................................................................................................... 82
FIGURE 18 INTERACTION METHODS AMONG ARTISANS IN SITE NO.2 ........................................................................................... 82
FIGURE 19 INTERACTION METHODS AMONG ARTISANS IN SITE NO.3 ........................................................................................... 83
FIGURE 20 INTERACTION METHODS AMONG ARTISANS IN ALL SITES (1, 2 AND 3) ................................................................... 83
FIGURE 21 SOCIOGRAM FOR CONSTRUCTION SITE 1 ......................................................................................................................... 85
FIGURE 22 SOCIAL NETWORK FOR CONSTRUCTION SITE 2.............................................................................................................. 87
FIGURE 23 SOCIAL NETWORK OF ARTISANS FROM CONSTRUCTION SITE 3 ................................................................................. 89

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LIST OF TABLES
______________________________________________________________________________________
TABLE 1: CLASSIFICATIONS OF NETWORKS WITHIN THE LITERATURE, (LAMMING ET AL. 2000: 678) ............................... 24
TABLE 2: THE PRIMARY ISSUES OF SUPPLY CHAIN AND SUPPLY NETWORK .............................................................................. 29
TABLE 3 INTERVIEWED ARTISANS ON SITE 1, 2 AND 3 ...................................................................................................................... 76
TABLE 4 PRESENTATION OF ETHNIC GROUPS IN SITE 1 ..................................................................................................................... 77
TABLE 5 PRESENTATION OF ETHNIC GROUPS IN SITE 2 .................................................................................................................... 78
TABLE 6 PRESENTATION OF ETHNIC GROUPS IN SITE 3 .................................................................................................................... 78

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CHAPTER ONE: INTRODUCTION
1.0 INTRODUCTION
This research investigages informal social networks in three construction enterprises in the
Western Cape, South Africa. Construction industry contributes in economic development, besides
being the basic input for economic and industrial development of the country, by providing
employment opportunities to unskilled as well as skilled labourers. In particular, through its ability
to absorb unskilled workers, it plays an important role in the integration of economic migrants
moving from the rural areas into the urban centres. It also employs a large number of people in
both formal and informal arrangements, e.g. 7% of labour force in Australia in 2002-3, 9.2% in
Hong Kong in 1999 and 4% of the workforce in South Africa (CIDB 2004). Construction
activities include building hospitals, houses, schools, offices, highways, townships, roads, ports,
railways, power projects, irrigation projects and other similar. The above construction activities
contribute to job creation hence government’s often invest in infrastructure during times of
economic recession in order to counter unemployment, e.g. South African government has
implemented expanded public works programme (EPWP) and national youth service learners in
order to increase job opportunities and skills acquisition.
People tend to use different methods to seek and access jobs. Checking with friends and relatives
has been found to be a widespread job search method in many countries including Italy, United
States (US) and United Kingdom (UK) (Holtzer, 1988 and Wadsworth, 1994). In a UK job survey,
Wadsworth (1994) found that job centres, media and friends/contacts are the main search
strategies used by unemployed job seekers and 32 percent of jobs were found through informal
networks channel, as opposed to 19 percent of job centres and 18 percent of media. Holtzer (1988)
cited by Pistaferri (1999) reports that in his US National Longitudinal Survey sample the two most
frequently used methods of job search are friends/relatives and direct application. He found that 18
percent of job seekers received job offers from the use of informal networks, as opposed to 19
percent from use of direct application and 10 percent from use of other methods. People should
have a social capital in order to access jobs.
Research on workers as well as job seekers, prove friendship as a way to provide individual
members with network resource (Granovetter, 1973; Applebaum, 1999; Lai et al., 1998). Both
studies describe friends as people who do activities together, such as eating, working, playing
sports and drinking. Lai et al. (1998) found that an employed worker who hears about a vacancy
tells at most one of his direct unemployed friends. Their findings state further that an unemployed

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