In applying social network theory to managerial theories, Ibarra (1992) proposes
their integration when managers attempt to build and employ informal personal
relationships to achieve their goals. Granovetter (1992) also states that economic action
should be embedded in their ongoing social network of relationships. In a supply chain,
through formal and informal communication channels, social networks may facilitate
information sharing, which helps match buyers and sellers or other business partners.
Furthermore, sharing information about labor and material costs, suppliers, distributors,
and other market conditions could reveal the profitability of an investment project, which
is crucial for supply chain decisions