This report at First Monday suggests that it's not what you it's who you know in the tech biz. When it comes to finding a job these days, I suggest that it's both. You need someone to get you in the door for an interview since the all of the doors are shut to outsiders, and when you get there, you better have 'mad skillz', because no one is hiring newbies.
But the report isn't really talking about getting a job, it's about the dynamics of those who already work together. And within that context, I think the report is spot on.