Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth

Bat Batjargal, Michael Hitt, Anne Tsui, Jean-Luc Arregle (arregle@em-lyon.com), Justin Webb and Toyah Miller
Additional contact information
Bat Batjargal: Harvard University, Peking University [Beijing]
Michael Hitt: Texas A&M University [College Station]
Anne Tsui: Fudan University [Shanghai], Shanghai Jiao Tong University [Shanghai], Peking University [Beijing], ASU - Arizona State University [Tempe]
Jean-Luc Arregle: EM - EMLyon Business School
Justin Webb: OSU - Oklahoma State University [Stillwater]
Toyah Miller: Indiana State University

Post-Print from HAL

Abstract: What is the interrelationship among formal institutions, social networks, and new venture growth? Drawing on the theory of institutional polycentrism and social network theory, we examine this question using data on 637 entrepreneurs from four different countries. We find the confluence of weak and inefficient formal institutions to be associated with a larger number of structural holes in entrepreneurial social networks. While the effect of this institutional order on the revenue growth of new ventures is negative, a network's structural holes have a positive effect on revenue growth. Furthermore, the positive effect of structural holes on revenue growth is stronger in an environment with a more adverse institutional order (i.e., weaker and more inefficient institutions). The contributions and implications of these findings are discussed.

Date: 2013-08-01
Note: View the original document on HAL open archive server: https://hal.science/hal-02276709v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (94)

Published in Academy of Management Journal, 2013, 56 (4), 1024-1049 p. ⟨10.5465/amj.2010.0095⟩

Downloads: (external link)
https://hal.science/hal-02276709v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02276709

DOI: 10.5465/amj.2010.0095

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).