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I disagree with some of his points, but well-argued and documented. From: J Comp Mediated Comm, Volume 13 Issue 2 Page 516-529, January 2008 (Full Text)

Probably the most important reading we will do in terms of "foundations" of social networks. Take your time with it and read it closely.

"Social network sites (SNSs) are increasingly attracting the attention of academic and industry researchers intrigued by their affordances and reach. This special theme section of the Journal of Computer-Mediated Communication brings together scholarship on these emergent phenomena. In this introductory article, we describe features of SNSs and propose a comprehensive definition. We then present one perspective on the history of such sites, discussing key changes and developments. After briefly summarizing existing scholarship concerning SNSs, we discuss the articles in this special section and conclude with considerations for future research."

Research on whether online social networks affect social capital