Costly Ties: Social Capital as a Retardant of Network‐Level Entrepreneurial Orientation

Joakim Wincent, Sara Thorgren and Sergey Anokhin

Journal of Small Business Management, 2016, vol. 54, issue 1, 229-243

Abstract: Challenging social capital research, we argue that network top management teams (s) established to support entrepreneurship in strategic multipartner networks should be careful in developing ties to outside organizations and networks. We suggest that such ties limit the network 's ability to engage in the strategy‐making processes needed to facilitate entrepreneurial orientation on a network level. Based on five‐year panel data from 53 formalized networks of small and medium‐sized enterprises, we demonstrate that homogenous and highly educated network s can compensate the negative effects of ties to other organizations, but not the negative effects of interlocking directorates.

Date: 2016
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DOI: 10.1111/jsbm.12140

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