Cognitive categorization and network perception: Cognitive aggregated social structures in opaque networks

We extend the literature on network perception by introducing a novel view of how this perception is structured. We propose the concept of Cognitive Aggregated Social Structures (CASS) as a framework to capture perceptions of opaque networks-that is, networks where relations are difficult to observe due to their features, their members, and the characteristics of the environment in which they operate. We argue that actors simplify their perception of opaque network structures via "chunking," that is, by cognitively representing network ties as between categories of actors rather than between specific network members. We test the validity of the CASS construct and its predictive power by showing how these representations affect actors' perceptions of relevant network outcomes. Using data from a major inter-organizational technology consortium, we show that perceived density among "chunks" in the knowledge transfer network is positively related to perceived consortium performance. Finally, we discuss the implications of our findings for the strategic management literature, highlighting potential contributions to strategic formulation and implementation, category emergence, industry evolution, and cognitive barriers to entry.