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The Evolution and Nature of Young Firm Networks: A Longitudinal Perspective

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  • Schutjens, Veronique
  • Stam, Erik

Abstract

This paper describes the evolution of networks during the first three years after start-up and puts forward explanations of the nature of networks of young firms after three years. We extend current research on networks by explicitly including both temporal change and spatial variation in our analyses of the longitudinal dataset. In this paper we define networks as: the main business relationships with respect to sales, supply, outsourcing and cooperation. The nature of these business relationships is specified by four main characteristics: type, number, source, and location. The longitudinal network analysis is therefore at the micro-level: the individual young firm and the characteristics of its most important business contacts are central. In contrast to the literature our analyses show that sales relationships become increasingly social in source during the first three years after start-up. We also find a persistent geographical concentration strategy in the main business relationships. It seems that extra-regional relationships are losing ground to intra-regional relationships over time: firms are narrowing their spatial scope in their first three years. In addition, we trace important effects of gender, education, innovative firm behaviour, region and sector on the nature of young firm networks three years after start-up. Copyright 2003 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 21 (2003)
Issue (Month): 2 (September)
Pages: 115-34

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Handle: RePEc:kap:sbusec:v:21:y:2003:i:2:p:115-34

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Web page: http://www.springerlink.com/link.asp?id=100338

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Cited by:
  1. Bosma, Niels & Hessels, Jolanda & Schutjens, Veronique & Praag, Mirjam Van & Verheul, Ingrid, 2012. "Entrepreneurship and role models," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 410-424.
  2. Niels Bosma & Veronique Schutjens, 2011. "Understanding regional variation in entrepreneurial activity and entrepreneurial attitude in Europe," The Annals of Regional Science, Springer, vol. 47(3), pages 711-742, December.
  3. repec:dgr:uvatin:2011061 is not listed on IDEAS
  4. Willem van Winden & Paulus Woets, 2004. "Local strategic networks and policies in European ICT clusters - the cases of Amsterdam, Bari, Dublin and Oulu," Urban/Regional 0409004, EconWPA.
  5. Inger Pettersen & Anita Tobiassen, 2012. "Are born globals really born globals? The case of academic spin-offs with long development periods," Journal of International Entrepreneurship, Springer, vol. 10(2), pages 117-141, June.
  6. Pascal Beckers & Robert Kloosterman, 2011. "Neighbourhood spatial order, social embeddedness and business prospects of native and ethnic entrepreneurs in the Netherlands," ERSA conference papers ersa10p1394, European Regional Science Association.
  7. Erik Stam & Veronique Schutjens, 2006. "Starting anew: Entrepreneurial intentions and realizations subsequent to business closure," Papers in Evolutionary Economic Geography (PEEG) 0605, Utrecht University, Section of Economic Geography, revised Mar 2006.
  8. Jack, Sarah L., 2010. "Approaches to studying networks: Implications and outcomes," Journal of Business Venturing, Elsevier, vol. 25(1), pages 120-137, January.
  9. Nicole Coviello & Martin Cox, 2006. "The resource dynamics of international new venture networks," Journal of International Entrepreneurship, Springer, vol. 4(2), pages 113-132, September.
  10. Veronique Schutjens & Niels Bosma & Jolanda Hessels & Mirjam Van Praag & Ingrid Verheul, 2011. "The strength of a good example: How important are role models for early-stage entrepreneurs?," ERSA conference papers ersa10p531, European Regional Science Association.
  11. Amanda Mackloet & Veronique A.J.M. Schutjens & Piet Korteweg, 2006. "Home-Based Business: Exploring the Place Attachment of Entrepreneurs," ERSA conference papers ersa06p694, European Regional Science Association.
  12. Okamuro, Hiroyuki & Ikeuchi, Kenta, 2012. "Determinants of business and financial network formation by Japanese start-up firms: Does founder’s human capital matter?," Working Paper Series 21, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.
  13. Harri Jokela & Eija-Riitta Niinikoski & Matti Muhos, 2013. "Knowledge Dynamics and Innovation: Case Studies in a Sparsely Populated Area," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.
  14. Broström, Anders & Baltzopoulos, Apostolos, 2013. "Higher education experiences and new venture performance," Working Paper Series in Economics and Institutions of Innovation 321, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  15. Smith, Delmonize A. & Lohrke, Franz T., 2008. "Entrepreneurial network development: Trusting in the process," Journal of Business Research, Elsevier, vol. 61(4), pages 315-322, April.

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