Guanxi, performance and innovation in entrepreneurial service projects

Iván Arribas, Penelope Hernandez () and Jose Vila ()

No 612, Discussion Papers in Economic Behaviour from University of Valencia, ERI-CES

Abstract: This paper analyzes the role played by two dimensions of entrepreneurs’ private social capital in the survival, growth and innovativeness of entrepreneurial service ventures: local size and preferential attachment degree. We build a bi-dimensional measure of social capital based on network models and a methodology to estimate this measure for any group of entrepreneurs. Based on a survey of service entrepreneurs who launched their business in the city of Shanghai, we show that roles played by each dimension are quite different. A large local size of the network increases the chances of survival of the new venture. However, the chance to become a dynamic venture is only related to entrepreneurs’ preferential attachment degree. This finding has relevant political and managerial implications.

Keywords: social capital; networks; innovation; entrepreneurship (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino, nep-knm, nep-net, nep-ppm and nep-soc
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:dbe:wpaper:0612

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