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Implications of Network Diversity for Venture Growth: The Mediation Effect of Entrepreneurial Alertness

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  • Wu Zhao

    (Xidian University, Xi’an 710126, China)

  • Jizhen Li

    (School of Economics and Management, Tsinghua University, Beijing 100084, China)

  • Xiaohua Li

    (School of Economics and Management, Tsinghua University, Beijing 100084, China)

  • Thomas Schøtt

    (Department of Entrepreneurship and Relationship Management, Southern Denmark University, Southern Denmark, Engstien 1, 6000 Kolding, Denmark)

Abstract

This paper extends the conventional wisdom of social networks and entrepreneurship by clarifying the relationship between network diversity and venture growth as well as by studying the mediation effect of entrepreneurial alertness on network diversity. It highlights the importance of diverse networks for providing heterogeneous information and resources, which is the antecedent of entrepreneurial alertness. In this paper, Global Entrepreneurship Monitor (GEM) data from 44 countries are used in our analysis, considering the country’s impact. Overall, we concluded that network diversity can significantly predict entrepreneurial alertness, and a venture’s growth. Furthermore, an entrepreneur’s educational level and entrepreneurial experience have positive moderating effects on the relationship between network diversity and entrepreneurial alertness.

Suggested Citation

  • Wu Zhao & Jizhen Li & Xiaohua Li & Thomas Schøtt, 2020. "Implications of Network Diversity for Venture Growth: The Mediation Effect of Entrepreneurial Alertness," Sustainability, MDPI, vol. 12(22), pages 1-15, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9762-:d:449620
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    Cited by:

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    2. Gu, Jing & Zhang, Fujuan & Xu, Xun & Xue, Chaokai, 2023. "Stay or switch? The impact of venture capitalists' movement across network communities on enterprises’ innovation performance," Technovation, Elsevier, vol. 125(C).
    3. Araujo, Clécio Falcão & Karami, Masoud & Tang, Jintong & Roldan, Lucas Bonacina & dos Santos, Julia Aita, 2023. "Entrepreneurial alertness: A meta-analysis and empirical review," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

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