How social and human capital influence opportunity recognition and resource mobilization in India's handloom industry

Suresh Bhagavatula, Tom Elfring (), Aad van Tilburg and Gerhard G. van de Bunt
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Suresh Bhagavatula: VU - Vrije Universiteit Amsterdam [Amsterdam], IIMB - Indian Institute of Management Bangalore
Tom Elfring: VU - Vrije Universiteit Amsterdam [Amsterdam]
Aad van Tilburg: WUR - Wageningen University and Research [Wageningen]
Gerhard G. van de Bunt: VU - Vrije Universiteit Amsterdam [Amsterdam]

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Abstract: Small-scale firms in rural areas play an extremely important role in the development of any country, and especially in developing countries. To understand entrepreneurs who operate in a low-technology industry, we rely on the network perspective on entrepreneurship. In this paper, we investigate how the social and human capital of entrepreneurs (in this case master weavers in the handloom industry) influence their ability to recognize opportunities and mobilize resources. In addition to examining the direct effects, we also explore the possibilities of social capital mediating between human capital, on the one hand, and opportunity recognition and resource mobilization on the other. This paper adds to existing literature in two ways: firstly, we expand the social capital paradigm by including different cultural settings and links to existing studies regarding small enterprises. Secondly, we provide additional evidence to the ongoing debate as to what constitutes a ‘good network'.

Keywords: Entrepreneurship; Social networks; Craft industry; Handloom industry (search for similar items in EconPapers)
Date: 2010-05-01
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Published in Journal of Business Venturing, 2010, 25 (3), 245-260 p. ⟨10.1016/j.jbusvent.2008.10.006⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04850414

DOI: 10.1016/j.jbusvent.2008.10.006

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