Embeddedness or Over-Embeddedness? Women Entrepreneurs’ Networks and Their Influence on Business Performance

Lavlu Mozumdar (), Geoffrey Hagelaar (), Valentina Cristiana Materia, S. W. F. Omta (), Mohammad Amirul Islam () and Gerben Velde ()
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Lavlu Mozumdar: Bangladesh Agricultural University
Geoffrey Hagelaar: Wageningen University
S. W. F. Omta: Wageningen University
Mohammad Amirul Islam: Bangladesh Agricultural University
Gerben Velde: Wageningen University

The European Journal of Development Research, 2019, vol. 31, issue 5, No 11, 1449-1469

Abstract: Abstract We analyse in what ways network embeddedness may influence the business performance of women entrepreneurs working in a socially constrained context. Data were collected through a survey sent to 292 women entrepreneurs engaged in handicraft businesses in Bangladesh. Results from multiple regression models show that, next to entrepreneurial orientation, financial capital and business experience, a small network is positively related, while medium-sized and large networks are negatively related, to performance. In-depth analysis reveals that a small bonding ties network is positively, while a medium-sized bonding ties network is negatively, and a large bonding ties network is not, statistically related to performance. Based on this, we assume that the networks of many women entrepreneurs may be over-embedded, because of too extensive connections with family and friends. Apparently, the over-embeddedness proposition of Uzzi (Am Sociol Rev 61:674–698, 1996) proves to be valid for women entrepreneurs operating under socially constrained circumstances in a developing country.

Keywords: Network (over-)embeddedness; Business performance; Women entrepreneurs; Socially constrained context (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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DOI: 10.1057/s41287-019-00217-3

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