BOUNDARIES OF NETWORK TIES IN ENTREPRENEURSHIP: HOW LARGE IS TOO LARGE?

Shanshan Qian () and Bruce H. Kemelgor
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Shanshan Qian: College of Business, University of Louisville, Louisville, KY 40292, USA
Bruce H. Kemelgor: College of Business, University of Louisville, Louisville, KY 40292, USA

Journal of Developmental Entrepreneurship (JDE), 2013, vol. 18, issue 04, 1-19

Abstract: External environments can require entrepreneurs to adjust and maintain network ties to cope with environmental changes and turbulence. Although network ties can help entrepreneurs gain resources and support, researchers are becoming aware of some negative aspects of networks, such as information redundancy. We used relative weight analysis and identified that environmental munificence and uncertainty influence the size of one's network. In addition, we surveyed 44 entrepreneurial founders of firms in the bio-technology industry regarding their network composition, including number of ties and firm performance. We found that environmental factors led to increases in both business and social network size. In addition, we identified an optimal number of network ties prior to tie-additions becoming negatively related to firm performance.

Keywords: Network ties; firm performance; environmental munificence; environmental uncertainty (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S1084946713500246

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