Date of Award

Spring 1-1-2025

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Management

First Advisor

Kovacs, Balazs

Abstract

Homophily, the tendency to form relationships with similar others, is a defining feature of social networks that shapes access to resources and market outcomes. While homophily fosters trust and coordination, it also risks reinforcing existing inequalities by concentrating opportunities within dominant groups. This dissertation examines the dual role of homophily and heterophily in professional transactions, focusing on how these dynamics affect underrepresented groups in client-facing industries.Through three empirical studies, the dissertation investigates homophily in organizational restructuring, client-agent selection in service industries, and real estate transactions. Across these settings, homophily does not yield uniform advantages or disadvantages. Rather, its effects depend on structural conditions and the professional capital of the actors involved. In some cases, homophilous ties provide stability and resilience, as seen in organizational restructuring, where women’s same-gender ties buffer against uncertainty. In client-agent interactions, firms with demographic compositions aligned with their surrounding markets facilitate heterophilous relationships that broaden opportunities. In real estate transactions, however, racial homophily constrains market outcomes, as minority sellers who choose same-group agents face systematic disadvantages—unless those agents hold substantial experience or network centrality. This research employs a multi-Level approach, combining large-scale quantitative analyses with network-based modeling to assess how homophily influences selection and performance outcomes and the organizations, dyad and individual. The findings challenge simplistic notions of homophily as inherently beneficial or detrimental, demonstrating that its effects are contingent on institutional structures and market-level biases. By integrating insights from network theory, organizational behavior, and economic sociology, this dissertation contributes to understanding how social similarity can serve both as a barrier and as a strategic asset. It highlights the role of structural interventions, such as demographic alignment, professional capital accumulation, and network dynamics, in mitigating homophily’s exclusionary effects. These insights have practical implications for firms, policymakers, and individuals seeking to navigate professional markets where identity-based selection mechanisms shape access to opportunities.

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