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Entrepreneurial network development: Trusting in the process

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  • Smith, Delmonize A.
  • Lohrke, Franz T.
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    Abstract

    An entrepreneur's network can provide a significant source of social capital, which, in turn, may increase a new venture's likelihood of success. Entrepreneurship research has frequently examined how such networks develop, and reviewing extant studies suggests that trust plays a significant role in this process. Despite its recognized importance, limited research exists examining how trust evolves during and interacts with the entrepreneur's venture network development. Accordingly, we propose that an entrepreneur's reliance on exchange relationships based on affective and cognitive trust will vary as the entrepreneur moves through the network development process. We conclude by discussing both the model's implications and future research avenues.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 61 (2008)
    Issue (Month): 4 (April)
    Pages: 315-322

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    Handle: RePEc:eee:jbrese:v:61:y:2008:i:4:p:315-322

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    Web page: http://www.elsevier.com/locate/jbusres

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    1. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    2. Schutjens, Veronique & Stam, Erik, 2003. " The Evolution and Nature of Young Firm Networks: A Longitudinal Perspective," Small Business Economics, Springer, vol. 21(2), pages 115-34, September.
    3. Sarah L. Jack, 2005. "The Role, Use and Activation of Strong and Weak Network Ties: A Qualitative Analysis," Journal of Management Studies, Wiley Blackwell, vol. 42(6), pages 1233-1259, 09.
    4. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
    5. Hoang, Ha & Antoncic, Bostjan, 2003. "Network-based research in entrepreneurship: A critical review," Journal of Business Venturing, Elsevier, vol. 18(2), pages 165-187, March.
    6. Boersma, Margreet F. & Buckley, Peter J. & Ghauri, Pervez N., 2003. "Trust in international joint venture relationships," Journal of Business Research, Elsevier, vol. 56(12), pages 1031-1042, December.
    7. Ritter, Thomas & Gemunden, Hans Georg, 2003. "Interorganizational relationships and networks: An overview," Journal of Business Research, Elsevier, vol. 56(9), pages 691-697, September.
    8. Bruderl, Josef & Preisendorfer, Peter, 1998. " Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-25, May.
    9. Gounaris, Spiros P., 2005. "Trust and commitment influences on customer retention: insights from business-to-business services," Journal of Business Research, Elsevier, vol. 58(2), pages 126-140, February.
    10. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
    11. Venkataraman, S. & VAN de VEN, Andrew H., 1998. "Hostile environmental jolts, transaction set, and new business," Journal of Business Venturing, Elsevier, vol. 13(3), pages 231-255, May.
    12. Alistair R. Anderson & Sarah L. Jack, 2002. "The articulation of social capital in entrepreneurial networks: a glue or a lubricant?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(3), pages 193-210, July.
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    Cited by:
    1. Strömsten, Torkel & Waluszewski, Alexandra, 2012. "Governance and resource interaction in networks. The role of venture capital in a biotech start-up," Journal of Business Research, Elsevier, vol. 65(2), pages 232-244.
    2. Houghton, Susan M. & Smith, Anne D. & Hood, Jacqueline N., 2009. "The influence of social capital on strategic choice: An examination of the effects of external and internal network relationships on strategic complexity," Journal of Business Research, Elsevier, vol. 62(12), pages 1255-1261, December.

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