We model the dynamics associated with evolution of the core and the periphery of a social-network. The model is based on an existing behavioral theory of the inter-firm (Baum and Ingram 2002). The formalization allows us to refine this existing theory through the introduction of a target setting process. Allied analysis documents the efficacy of exploration and exploitation policies within the core and across the periphery of a social network. Our results show that the competitive advantage accrued through exploration and exploitation is crucially affected by the behavioral biases, imitation and the target setting associated with the evolution of key constructs.