DOI: https://doi.org/10.62204/2336-498X-2025-1-9

Impact of Innovations and Global Changes

on Transformation of Social Networks Role in IT Organizations

 

Anna Shalomova,

Ph.D. student,

National University of Kyiv-Mohyla Academy, Ukraine,

a.shalomova@ukma.edu.ua; ORCID ID: 0009-0009-0277-7845

 

Annotation. The article examines the impact of innovations and global changes on social networks in IT companies. The following three key factors are considered: the COVID-19 pandemic, the war in Ukraine and the active implementation of artificial intelligence tools in the working environment of IT organizations. The analysis shows how such changes are transforming the structure and functions of social networks as well as affecting employee interaction, information diffusion, knowledge sharing, and corporate culture. The author emphasizes the need to adapt management strategies to maintain the social connectivity of employees in order to increase productivity in remote work and digital transformation.

Keywords: innovation, technology, artificial intelligence, AI tools, social networks, organizational social network, AI social node, organization management, IT organization, organizational culture, innovative culture, team performance, human resources management, remote work, Ukrainian labor market.

 

Introduction. When analyzing the society through the lens of innovative technology development, we should note that throughout history, a chain of successive innovations has significantly changed the foundations of our civilization. Such historical innovations would include mastering the fire, creating the first stone tools, developing the speech and writing, using the steam power and electricity, cultivating methods to transmit information over long distances, inventing the first computers, harnessing the nuclear energy, making advances in biotechnology and genetic engineering, etc. Each innovation served as a tool to address complex social and economic challenges. However, it would raise an important question: have these innovations always positively impacted our progress? When examining the society development periods over time, we could observe that introducing new technologies has contributed to the craftsmanship decline due to mass production, increased the unemployment rate due to expanding automation technologies, diminished personal interactions because of the social communication platforms rise, generated confidentiality and private data protection issues, aggravated social inequality across societies, degraded the quality of education, shifted the labor culture, as well as reduced the influence of religious and moral values. The above-mentioned phenomena have resulted from technological globalization of the modern society, which impacts not only the technological landscape, but also the social processes, organizations, groups, etc. Therefore, it is crucial to study the transformation changes taking place through introducing the innovation technologies. Since the interplay between the innovations, technologies and the context may lead to the emergence of new behavior models, social norms, and economic relationships.

Analysis of studies and publications. Currently, many scientific studies analyze the impact of innovations on societal development. Such prominent scholars as M. Kondratieva, S. Kuznetsova, G. Mensha, M. Tugan-Baranovsky, P. Sorokin, B. Twissa, J. Schumpeter, E. Rogers, R. Solow, K. Christensen, R. Nelson, M. Castells, K. Freeman, and others have made notable contributions. These scholars have both outlined a theoretical framework and shown how innovations shape new social, economic, and cultural environments. For instance, J. Schumpeter, known for his theory of creative destruction, argued that innovations and technological progress alter traditional economic and social structures eliminating outdated technologies and creating new production relationships. Though the process may lead to economic disruptions and job losses in the short term, it ultimately stimulates economic growth, increases productivity, and improves living standards [3]. Creative destruction is the foundation of capitalist progress, driving dynamic renewal in the economy. Despite being published in 1942, Schumpeter’s insights regarding the impact of innovation on society remain relevant today.

The scientist E. Rogers, who originated the diffusion of innovations model, made just as important contribution to understanding of the impact of innovations on society. Rogers identified several groups that adopt innovations at different rates, such as innovators, early followers, early majority, late majority, and laggards. The diffusion of innovations occurs through social networks and depends on factors such as the relative advantage of the innovation, its compatibility with existing values, complexity, trialability, and the observability of results from using the innovation [17]. Rogers’ theory enables us to understand how and why people accept or reject innovations, which is crucial to successfully implement new ideas in society.

1. Castells, a Spanish sociologist, developed the concept of the information society, highlighting the pivotal role of information technologies in transforming the economy, culture, and social structures. His theory describes the shift from an industrial society to an information society, where information becomes the primary resource rather than material assets. Castells emphasizes that global information and communication networks are altering the nature of work, creating new forms of social interaction, and increasing inequality between those who have access to information and those who do not. His theory explores how the Internet and digital technologies serve as foundations for globalization and new models of social development [8].

As we would notice, the research conducted by the scholars provides valuable insights into how innovations influence economic and social processes, reshaping the foundational aspects of society’s operations.

Since the author explores the effects of innovative technologies and global changes on social networks, it is essential to actively consider the core theories and concepts that explain the interaction between social structures and innovations.

In sociology, notable scholars such as M. Granovetter, R. Burt, M. Castells, D. Watts, S. Milgram, L. Freeman, J. Coleman, N. Christakis and others have focused on social networks and studied how these networks are formed, function, and impact on social and economic transformations in society. Moreover, the scholars also explore the role of social connections in information diffusion, building trust, and maintaining corporate culture, among other topics. For example, R. Burt, a world-renowned scholar, examined the influence of social networks on generating ideas and social capital. His central hypothesis suggests that individuals who occupy intermediary positions between groups, known as “structural holes,” are more likely to generate valuable ideas. Those who hold such positions in a social network and relate to different groups are called brokers. Brokers enhance their knowledge by accessing diverse perspectives and practices, which ultimately form the basis of their social capital [1].

The equally prominent scientist M. Granovetter introduced the concept of the “strength of weak ties” and presented those weak ties, such as acquaintances or distant colleagues, can be more valuable for accessing new information and opportunities than strong ties, which include close friends or family. As long as people within our immediate social circle often share the same resources and information, while acquaintances from different social groups can provide fresh ideas and connections [4]. Granovetter’s research can be useful in understanding how establishing and maintaining diverse social ties, as they facilitate access to new ideas, resources, and opportunities. Additionally, these ties can play a significant role in fostering innovation within organizations and enhancing teamwork effectiveness.

The “small world” theory proposed by D. Watts suggests that any two individuals in an extensive social network can be connected through relatively few intermediaries. This idea is often illustrated by the concept of six degrees of separation, assuming that, on average, six people connect any two strangers in the world [22].   The small world theory is instrumental in explaining how information and ideas can spread quickly within large social networks and it can be applied across various fields, including sociology, biology, computer science, and marketing.

These and other research works have laid the groundwork to identify and analyze major social relations patterns in the relationships network. However, most of the studies were conducted between the 1960s and 2000s, when people did not have access to technology to the extent that they do today. Therefore, social networks were largely considered by scientists in a context largely unaffected by modern digital technologies and automation as we face these days. For this reason, the author of the article would like to highlight that a gap in knowledge about social networks was discovered. Accordingly, it emphasizes the relevance and necessity to research the impact of innovative technologies on the traditional role of social networks, considering the circumstances in which this influence occurs. To effectively explore this impact of innovative technologies within an organization’s social network, we must clarify some key concepts, namely network, social network, technology, innovation, remote work, information technologies, Internet search engines, artificial intelligence and AI social node.

The term “network” refers to a collection of elements consisting of nodes and edges illustrating the connections between these nodes [15]. Nodes represent people, organizations, biological structures, and other units. In various scholarly works, the term “nodes” may be interchangeable with “actors.”

Many systems are now recognized for their ability to form networks. Notable examples include the Internet, social communication platforms, organizational networks, corruption networks, terrorist networks, neural networks, citation networks between articles, etc. However, the author of the article would still be focused specifically on the social network within an organization.

According to Wasserman, Stanley, Faust, and Katherine (1994), the concept of a “social network”, or a “social graph”, refers to a social structure consisting of the node sets, such as individuals or organizations, as well as the dyadic ties and other social interactions between these nodes [21]. Social networks enable organizations to effectively share knowledge, diffusion of information, generate new ideas and approaches, as well as to solve work-related problems. Through social network analysis, organizational leaders can closely examine the structure and dynamics of social interactions within their organization or groups. A comprehensive understanding of the social networks the properties can create opportunities to optimize management systems and enhance innovation within the organization.

The concept of “technology” arises from intellectual activity and encompasses organized scientific knowledge and technical and organizational and other decisions related to the list, timing, procedures, and sequence of executing operations involved in producing, selling, and storing products and providing services [10].

The concept of “innovation” refers to newly created (applied) and (or) improved competitive technologies, products or services, as well as organizational and technical solutions of a production, administrative, commercial or other nature, which significantly improve the structure and quality of production and (or) the social sphere [11].

The term of “remote work” describes a type of work in a remote mode and can be defined as a form of organization and/or performance of work using information technology, in the context of an employment contract/employment relationship, when work that can be performed on the employer’s premises is regularly performed outside such premises [19].

The term of “information technology” refers to a collection of methods, production processes, as well as software and hardware tools integrated into a technological framework enabling to collect, store, process, output, and disseminate information in order to reduce the labor intensity of information resources while increasing reliability and efficiency [23].

The term “Internet search engine” refers to a web-based tool that allows users to search for information on the Internet by entering keywords or phrases. It retrieves relevant websites, documents, and other resources based on the user’s query [18].

The term “artificial intelligence” refers to the capability of computers and other machines to exhibit or replicate intelligent behavior similar to that of humans. It is also the field of study focused on this concept. Additionally, the term describes software designed to perform tasks or achieve outcomes that were once believed to necessitate human intelligence, particularly by using machine learning to extrapolate from large data sets [16].

Also, the article’s author wants to introduce a new concept – AI social node or AI social actor, which describes an artificial intelligence node integrated into an organization’s social network. AI social node serves as a knowledge resource that streamlines the process of information and solutions retrieval by providing insights, information, and recommendations upon request, replacing traditional knowledge sharing and idea generation among team members. However, it is necessary to note that the AI social node does not participate independently in knowledge and information diffusion within an organization. It indirectly contributes to the information flow by providing essential knowledge or information that can be shared and applied by other network participants. This concept is in the research and development phase.

The positive impact of integrating innovative technologies into the work processes of IT organizations is well established, as it is well known that implementing these technologies optimizes labor by automating routine tasks, boosting team productivity, speeding up task completion, and introducing new people and organizational management methods. Therefore, the author of the article proposes to consider the following hypothetical statements:

Remote work and the geographical separation of employees may cause distancing among team members, decrease the number of personal contacts, and propel the feeling of social isolation in individuals. These social and psychological factors can change the organizational social network by influencing its structure, density, centralization, network size, information exchange speed, employees’ level of involvement and trust, knowledge exchange and ideas generation, intensity and frequency of communications in the organization, as well as efficiency in socializing new employees, mutual support among employees, and company’s corporate and innovative culture.

Applying innovative technologies can transform the traditional role of social networks by influencing their structure, density, centralization, network size, information exchange speed, level of employee engagement and trust, knowledge sharing and idea generation, the intensity and frequency of communications in company, level of trust and mutual support among employees, as well as the corporate and innovative culture of the organization. As employees increasingly turn to online resources and artificial intelligence tools for assistance, the number of interpersonal interactions may decrease, reducing the need for obtaining information and sharing knowledge through the organization’s social ties.

To investigate this issue, the author utilizes methods of analysis from recent scientific literature and publications, as well as statistical and socio-psychological data analyses.

Presentation of the basic material.  The author examines three key transformations that have affected and reshaped Ukrainian IT companies for the past five years.

The First Transformation. In 2020, Ukraine and the rest of the world faced the COVID-19 pandemic, economic recession, and various social challenges. According to the statistic data analysis conducted by researchers O. I. Kariy, L. I. Galkiv, and A. Y. Tsapulych in 2021, the IT industry began to optimize its operating costs, halt external hiring, rotates available resources between projects, and implements anti-crisis programs.

Approximately 36% of Ukrainian IT organizations reduced staff expenses, 40.5% of them cut administrative expenses by opting out of office rentals, 10.2% of companies implemented technical optimizations, and 5.1% of entities adopted other anti-crisis measures. Notably, only 20.4% of organizations managed to continue their operations as previously. Consequently, the corporate work culture and the employee behavior patterns have been evolving. In December 2020, 84% of employees fully transitioned to remote work, and by the end of the year, only 2% returned to working exclusively in the office [6]. These changes have affected several aspects: 1) how employees and management interact is evolving, with new approaches to time management, communication, and planning being introduced, 2) the primary mode of communication and collaboration between employees has shifted from physical meetings to online platforms such as Zoom, Microsoft Teams, Skype, Google Meet, and various messaging apps, 3) organizational management is allocating more resources to developing and implementing strategies to maintain the employees’ engagement.

Collectively, all these factors begin to impact and alter the organizational social network and the social connections between employees. For instance, research into the impacts of the pandemic and enforced isolation on the social relations structure and the feeling of loneliness has revealed a decrease in the size and density of social networks among respondents, which has sharpened the feelings of loneliness. Individuals with fewer than five close relationships were found to be particularly vulnerable. Face-to-face communication with close friends and family reduced feelings of loneliness, while digital means of communication were less effective [9].

In the study examining the impact of social and organizational connectedness on employees’ well-being during the COVID-19 pandemic, Brown, A., & Leite, A. C. (2022) highlighted the importance of maintaining social connections during remote work. The study also demonstrated that implementing strategies to foster organizational identification, social engagement, support, and communication was crucial to preserve a healthy psychological and social environment, which significantly influenced the team’s perception of remote working under the forced isolation circumstanced.

This raises the question of how an organization’s management system should look like to enable the social network to retain its essential properties required to facilitate communication, knowledge and information exchange, establish and maintain professional relationships, support innovation and idea sharing, strengthen the corporate culture and the company innovation culture, enhance employee engagement and motivation, facilitate the new employees adaptation, and encourage collaboration among different team members.

The Second Transformation. In February 2022, a full-scale war in Ukraine began due to the Russian invasion, leading to significant changes in the labor market as a result of both internal and external migration of Ukrainians. It is on the record that, during the first weeks of the war, approximately a million of working-age individuals left the country. According to analysis held by Vynnychuk R.O. (2022), the number of job vacancies decreased by 34.17%, while responses to the vacancies fell by 17.8%; the ratio of reactions per vacancy increased by 25.48% compared to the pre-war period. Additionally, the number of remote job openings and opportunities abroad has also risen, mainly due to relocation of IT professionals both within the country and internationally [20]. Remote work has become an integral part of the new reality for many Ukrainian industries. On one hand, such a shift has surely allowed companies to continue operations despite the war and changes in employee locations. On the other hand, employees are facing more social and psychological challenges than during the pandemic.

Up until today, most IT companies in Ukraine have adopted remote or, less frequently, hybrid work formats. Remote work is becoming an increasingly common and widespread mode, enabling the employees to remain productive in an unstable environment and adapt their work processes to new realities. However, this shift raises new social and psychological challenges of utmost importance and those must be addressed promptly. For example, in their study of the psychological aspects of remote work, Y. Kaimanova and N. Riabokon (2024) highlight the emergence of issues such as social isolation, blurred boundaries between work and personal time, deterioration of mental health, reduced social interaction, etc. They also put an accent on the fact that while virtual communication and online meetings can partially compensate for the lack of physical social support, the absence of face-to-face interactions remains a significant problem [7]. All of these factors contribute to an increased risk of stress and burnout, presenting challenges for IT companies in maintaining productivity and ensuring their employees’ mental well-being. Ultimately, all these issues directly impact the efficiency of the entire organization’s team.

Based on the analyzed data, the author concludes that remote work can impact a company’s social network. A decrease in personal interactions between employees alters the nature of social ties, making them less dense and more formal. This shift also affects the speed at which information and knowledge are exchanged, influences the generation of new ideas, and reduces the intensity and frequency of communication among employees. Additionally, remote work can hinder the adaptation of new employees, as socialization in a virtual environment is often less effective.

The third transformation. These days, the global IT market is experiencing significant changes due to rapid technological advancement. Innovative technologies are increasingly defining and shaping new approaches to business operations, management systems, labor productivity, and the sustainable development of organizations and enhancing their competitiveness. Presently, integrating artificial intelligence into workplace culture is becoming one of vital elements of the new transformation, fundamentally altering business practices and interaction patterns with employees and customers.

John McCarthy at the Dartmouth Conference first introduced the term “artificial intelligence” in 1956 [14]. Since then, artificial intelligence has evolved significantly, progressing from early theoretical models to powerful technologies capable of automating complex processes and supporting human activities. Yet, its widespread use has only emerged in recent years.

In November 2022, OpenAI launched its new product online – the ChatGPT platform to quickly and essentially transform workflow automation, communication, and information retrieval approaches. The product went viral, spreading rapidly across the United States, Europe, and Asia. Within five days of its release, the number of its users surpassed one million. ChatGPT began to significantly alter various domain of human activities, including customer service, healthcare, education, content creation, business, etc. [12].  The world is entering the “Age of Artificial Intelligence”, which extends beyond global markets and the ChatGPT platform. Alternative and equally powerful tools, such as GitHub Copilot, Google Gemini, Midjourney, DALL-E 2, Stable Diffusion, and Claude, are emerging on the market at a rapid pace.

In 2023, Microsoft launched a new tool called Microsoft Copilot. The tool utilizes the GPT-4 language model from OpenAI and is integrated into various applications such as Word, Excel, PowerPoint, Outlook, Teams, and business solutions. It aims to help users automate routine tasks and analyze large amounts of data [13]. Simultaneously, a number of other products is increasingly incorporating artificial intelligence into their functionalities. Notable examples include project management systems like Asana, Trello, Jira, Monday.com, Wrike, etc., as well as CRM systems similar to Salesforce and HubSpot. Data analysis platforms like Tableau and Power BI, writing assistants like Grammarly, and HR systems such as Workday are also implementing AI features.

Ukrainian IT organizations are actively integrating artificial intelligence into their workflows, demonstrating a rapid adaptation to new technologies. This trend shows that the impact of AI transcends geographical boundaries and is spreading equally in countries where digital technologies and AI-based services are prevalent.

The analysis on the artificial intelligence use by Ukrainian IT professionals reveals significant growth since its introduction. A survey conducted in 2023 showed that 53% of employees actively used AI to solve work tasks. In 2024, the number increased up to 85%. The use of chatbots is exceptionally high: 41% of employees reported using these tools daily or several times a week, while 32% used AI for work several times a month. Additionally, 12% reported rare usage, and 15% did not use AI. The primary purposes to apply AI tools include searching for information seeking advice, and finding various solutions with 83% of respondents, writing text (50%), writing code (44%), detecting errors (34%), translating texts (29%), brainstorming new or creative ideas (25%), and creating marketing materials (8%). As it turned out, most Ukrainian professionals view AI as positively impacting their work processes, with only 6% expressing concern about potential job loss due to the introduction of AI tools [5].

Many users highlight the positive effects of AI tools on optimizing work processes and boosting productivity. However, this study focuses on exploring the impact of the tools on sociological processes within organizations. The author notes that according to the survey conducted by the DOU IT community, it was revealed that 83% of IT professionals utilize artificial intelligence to seek information, advice, and various solutions. Correspondingly, the statistic indicates a shift in employees’ behavior regarding knowledge and information exchange. Thus, artificial intelligence is increasingly becoming the primary source for quick access to information, replacing traditional person-to-person communication. The author attributes these changes in employees’ behavior to several factors: 1) instant access to information being essential for prompt problem-solving, 2) rapid resolution of issues in time-sensitive situations, 3) search and generation of ideas, 4) objective answers are accessible and free from the biases that may arise during interactions with colleagues, 5) integrating concepts from different fields to foster the development of new approaches, 6) assuring confidentiality for users who may not feel comfortable discussing work tasks with colleagues, 7) access to a broad range of knowledge and expertise that may not be available within the organization, 8) the convenience to operate asynchronously, etc.

The author emphasizes the changing behavior of users in searching for information online. Traditionally, search engines like Google, Yahoo, and Bing have been the primary tools for information retrieval. However, the author suggests that these platforms may gradually lose their prominence due to the rapid advancement of innovative artificial intelligence technologies. Several factors contribute to the shift in user behavior: 1) presently, searching for information has become more complicated as the Internet is inundated with vast data, 2) users often feel overwhelmed and struggle to process the information available, 3) the multitude of sources requires users to analyze them independently, 4) finding information demands significant effort to select relevant sources, and 5) search ads, banner ads, pop-ups, and notifications frequently divert users’ attention. As a result, in the future, information search may increasingly rely on artificial intelligence. Therefore, AI offers quick access to structured information and can synthesize answers from multiple sources. Consequently, artificial intelligence could take over the role of a conscious information search, effectively acting as a consultant for users.

Thus, applying innovative technologies can alter the traditional role of social networks, affecting their structure, density, centralization, network size, information exchange speed, employee engagement, knowledge sharing, idea generation, intensity and frequency of communications, level of trust, and mutual support among employees, as well as the corporate and innovative culture of the organization. As employees increasingly turn to artificial intelligence tools for assistance, there is a noticeable reduction in interpersonal interactions and a decreased reliance on social ties for obtaining information and sharing knowledge. This is how artificial intelligence is embedded into an organization’s social network and becomes its AI social node.

Accordingly, the research and analysis of recent transformations allow the author to conclude that the remote format of work and the introduction of innovative technologies can affect the organization’s social network. Given the transformative influence, modern IT companies should implement new approaches and strategies to the management system of the organization to ensure a high degree of productivity and competitiveness of the organization.

Conclusions. Innovations have been reshaping society starting from ancient times, long before the of computers, internet technologies, and artificial intelligence in the workplace. Applying innovations have transformed not only the global economy, but it significantly altered the traditional role of social networks within organizations.

Analysis of recent studies and scientific publications highlights the effects of remote work and the integration of innovative technologies on organizational social networks. These changes contribute to a decrease in employees’ social connectedness, a reduction in the size of social networks, and alterations in their network structure and features, which complicates the development of informal communication among employees, hinders the rapid exchange of information and knowledge, and reduces the intensity and frequency of interactions among colleagues, etc. Consequently, these factors can challenge maintaining effective social relationships within an organization. In addition, the integration of artificial intelligence into the social network and organization environment has been noted, suggesting the need to introduce a new concept as an AI social node and further study this process.

Though remote work and introducing innovative technologies offer organizations certain advantages, such as increased employee productivity and optimized routine processes, they also change the traditional role of social networks, which is crucial for enterprise efficiency. Therefore, modern IT organizations should adapt their management systems and implement strategies that optimize work formats and enhance employee interaction. They should also consider social and psychological factors when integrating new technologies into the workplace and develop programs that foster teamwork competencies in a remote work environment.

 

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