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Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior?

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  • Fischer, Eileen
  • Reuber, A. Rebecca
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    Abstract

    Social interaction plays a central role in effectuation processes, yet we know little about the implications for effectuation when an entrepreneur interacts via particular channels such as social media. To address this gap, our paper uses an inductive, theory-building methodology to develop propositions regarding how effectuation processes are impacted when entrepreneurs adopt Twitter. Twitter is a microblogging platform that can facilitate a marked increase in interaction. We posit that Twitter-based interaction can trigger effectual cognitions, but that high levels of interaction via this medium can lead to effectual churn. We also posit that there is one factor, perceived time affordability, that predicts the level of social interaction in which an entrepreneur engages via Twitter. Further, we propose two factors that moderate the consequences of social interaction through Twitter. These factors are community orientation and community norm adherence. Implications for our understanding of effectuation, of social interaction, and of the impact of social media on entrepreneurial firms are discussed.

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    Bibliographic Info

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

    Volume (Year): 26 (2011)
    Issue (Month): 1 (January)
    Pages: 1-18

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    Handle: RePEc:eee:jbvent:v:26:y:2011:i:1:p:1-18

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

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    Keywords: Effectuation Social media Twitter;

    References

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    1. Kaplan, Andreas M. & Haenlein, Michael, 2010. "Users of the world, unite! The challenges and opportunities of Social Media," Business Horizons, Elsevier, vol. 53(1), pages 59-68, January.
    2. Read, Stuart & Song, Michael & Smit, Willem, 2009. "A meta-analytic review of effectuation and venture performance," Journal of Business Venturing, Elsevier, vol. 24(6), pages 573-587, November.
    3. Sapienza, Harry J., 1992. "When do venture capitalists add value?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 9-27, January.
    4. Saras Sarasvathy & Nicholas Dew, 2005. "New market creation through transformation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 533-565, November.
    5. Nicole E Coviello, 2006. "The network dynamics of international new ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 37(5), pages 713-731, September.
    6. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    7. Lechner, Christian & Dowling, Michael & Welpe, Isabell, 2006. "Firm networks and firm development: The role of the relational mix," Journal of Business Venturing, Elsevier, vol. 21(4), pages 514-540, July.
    8. Baron, Robert A. & Markman, Gideon D., 2003. "Beyond social capital: the role of entrepreneurs' social competence in their financial success," Journal of Business Venturing, Elsevier, vol. 18(1), pages 41-60, January.
    9. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2009. "Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices," Journal of Business Venturing, Elsevier, vol. 24(4), pages 287-309, July.
    10. Wiltbank, Robert & Read, Stuart & Dew, Nicholas & Sarasvathy, Saras D., 2009. "Prediction and control under uncertainty: Outcomes in angel investing," Journal of Business Venturing, Elsevier, vol. 24(2), pages 116-133, March.
    11. 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.
    12. Maula, Markku V.J. & Autio, Erkko & Murray, Gordon C., 2009. "Corporate venture capital and the balance of risks and rewards for portfolio companies," Journal of Business Venturing, Elsevier, vol. 24(3), pages 274-286, May.
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    Cited by:
    1. Fischer, Eileen & Rebecca Reuber, A., 2014. "Online entrepreneurial communication: Mitigating uncertainty and increasing differentiation via Twitter," Journal of Business Venturing, Elsevier, vol. 29(4), pages 565-583.

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