Chapter 138

Value Creation in Networks

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Crisis networks thrive on value creation, not value extraction. The more value flows through the network, the stronger it becomes.

Information Arbitrage Within Networks

Different network members possess different information. Connecting these information asymmetries creates value for all parties.

Karen excelled at information arbitrage within her network. When she learned about supply chain disruptions from manufacturing contacts, she immediately informed retail members who could adjust inventory. When retailers shared changing consumer patterns, she connected this to manufacturers needing to pivot production. Everyone benefited from faster, better information.

Capability Combination

Individual capabilities multiply when combined creatively. Crisis networks enable combinations impossible for isolated individuals.

Thomas orchestrated capability combinations during disruption: - Connected a displaced chef with an empty kitchen owner - Linked unemployed drivers with businesses needing delivery - Paired technical experts with non-technical businesses - Matched space needs with space availability

Each combination created value exceeding the sum of parts.

Trust Transference

Trust transfers through network connections. When trusted member A vouches for new member B, the network's trust partially transfers, enabling rapid collaboration.

Lisa leveraged trust transference to build rapid crisis responses. When she identified needs requiring capabilities outside her network, she could quickly integrate new members through existing trusted connections. This trust transference enabled collaboration at crisis speed rather than normal relationship-building pace.