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Strong ties, weak ties and islands: structural and cultural predictors of organizational innovation

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  • Martin Ruef
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    Abstract

    How does the tendency of entrepreneurs to engage in innovation relate to their structural and cultural embeddedness? Using micro-data on entrepreneurial teams and the organizational innovations they attempt to develop, this article presents a predictive model of creative action to address this question. Capacity for creative action is seen to be a function of the ability of entrepreneurs to (i) obtain non-redundant information from their social networks; (ii) avoid pressures for conformity; and (iii) sustain trust in developing novel--and potentially profitable--innovations. Probit analyses of over 700 organizational startups suggest that these mechanisms exercise effects on innovation via the network ties and enculturation of entrepreneurs. Copyright 2002, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Industrial and Corporate Change.

    Volume (Year): 11 (2002)
    Issue (Month): 3 (June)
    Pages: 427-449

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    Handle: RePEc:oup:indcch:v:11:y:2002:i:3:p:427-449

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    Cited by:
    1. Rossi, Federica, 2002. "An introductory overview of innovation studies," MPRA Paper 9106, University Library of Munich, Germany, revised Jun 2008.
    2. Lincoln, James R. & Guillot, Didier, 2011. "Business Groups, Networks, And Embeddedness: Innovation And Implementation Alliances In Japanese Electronics, 1985-1998," Institute for Research on Labor and Employment, Working Paper Series qt35g695gn, Institute of Industrial Relations, UC Berkeley.
    3. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    4. Riccardo Crescenzi & Luisa Gagliardi & Marco Percoco, 2013. "Social capital and the innovative performance of Italian provinces," LSE Research Online Documents on Economics 46414, London School of Economics and Political Science, LSE Library.
    5. Sigfusson, Thor & Chetty, Sylvie, 2013. "Building international entrepreneurial virtual networks in cyberspace," Journal of World Business, Elsevier, vol. 48(2), pages 260-270.
    6. Thor Sigfusson & Simon Harris, 2012. "The relationship formation paths of international entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 325-349, December.
    7. Kwon, Seok-Woo & Arenius, Pia, 2010. "Nations of entrepreneurs: A social capital perspective," Journal of Business Venturing, Elsevier, vol. 25(3), pages 315-330, May.
    8. Leeves, Gareth.D. & Herbert, Ric., 2014. "Gender differences in social capital investment: Theory and evidence," Economic Modelling, Elsevier, vol. 37(C), pages 377-385.
    9. Masurel, E. & Nijkamp, P., 2009. "Bridging the gap between institutions of higher education and small and medium-size enterprises," Serie Research Memoranda 0037, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Bernard Fallery & Carole Marti & Gerald Brunetto, 2007. "Storytelling on the Internet to develop weak-link networks. Two case studies Artistoria," Post-Print hal-00777898, HAL.
    11. Bradley, Steven W. & Wiklund, Johan & Shepherd, Dean A., 2011. "Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth," Journal of Business Venturing, Elsevier, vol. 26(5), pages 537-554, September.
    12. Opolot, Daniel & Azomahou, Theophile, 2012. "Learning and convergence in networks," MERIT Working Papers 074, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Paul Steffens & Siri Terjesen & Per Davidsson, 2012. "Birds of a feather get lost together: new venture team composition and performance," Small Business Economics, Springer, vol. 39(3), pages 727-743, October.
    14. Yamin, Mo. & Otto, Juliet, 2004. "Patterns of knowledge flows and MNE innovative performance," Journal of International Management, Elsevier, vol. 10(2), pages 239-258.

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