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The Functional Diversity and Spillover Effects of Social Capital

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  • Abigail M. Barr

Abstract

Entrepreneurial networks are functionally diverse. They can be used to access information about technologies and markets or to reduce uncertainties. A network's function affects its structure and the nature of the relationship that exists between networking effort and enterprise performance. Networks that reduce uncertainty are small and cohesive. Here, the positive relationship between co-networkers' efforts and own enterprise performance is cancelled out by a negative relationship between own networking effort and enterprise performance. In contrast, the strong positive relationship between own networking effort and enterprise performance within networks designed to provide access to information about technologies and markets dominates the negative relationship between co-networkers' efforts and own enterprise performance. This last relationship is consistent with the existence of negative spillover effects in the second type of network. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 11 (2002)
Issue (Month): 1 (March)
Pages: 90-113

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Handle: RePEc:oup:jafrec:v:11:y:2002:i:1:p:90-113

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Cited by:
  1. Sabatini, Fabio & Antoci, Angelo & Sodini, Mauro, 2010. "The Solaria Syndrome: Social Capital in a Growing Hyper-technological Economy," AICCON Working Papers 71-2010, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
  2. Katungi, Enid & Edmeades, Svetlana & Smale, Melinda, 2006. "Gender, social capital and information exchange in rural Uganda:," CAPRi working papers 59, International Food Policy Research Institute (IFPRI).
  3. Pasquier-Doumer, Laure & Nordman, Christophe Jalil, 2013. "Transitions in a West African Labour Market: The Role of Social Networks," Economics Papers from University Paris Dauphine 123456789/12204, Paris Dauphine University.
  4. Nordman, Christophe Jalil & Pasquier-Doumer, Laure, 2014. "Transitions in a West African Labour Market: The Role of Family Networks," IZA Discussion Papers 8349, Institute for the Study of Labor (IZA).
  5. Henriette Dose, 2007. "Securing Household Income among Small-scale Farmers in Kakamega District: Possibilities and Limitations of Diversification," GIGA Working Paper Series 41, GIGA German Institute of Global and Area Studies.
  6. Jean-Philippe BERROU (GREThA UMR CNRS 5113) & François COMBARNOUS (GREThA UMR CNRS 5113), 2008. "Ties configuration in entrepreneurs’ personal network and economic performances in African urban informal economy," Cahiers du GREThA 2008-25, Groupe de Recherche en Economie Théorique et Appliquée.
  7. Masakure, Oliver & Cranfield, John & Henson, Spencer, 2008. "The Financial Performance of Non-farm Microenterprises in Ghana," World Development, Elsevier, vol. 36(12), pages 2733-2762, December.
  8. Arne Bigsten & Mans Söderbom, 2006. "What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa?," World Bank Research Observer, World Bank Group, vol. 21(2), pages 241-265.
  9. Barr, Abigail, 2004. "Forging Effective New Communities: The Evolution of Civil Society in Zimbabwean Resettlement Villages," World Development, Elsevier, vol. 32(10), pages 1753-1766, October.
  10. Jean-Philippe BERROU (GREThA UMR CNRS 5113) & Claire GONDARD-DELCROIX (GREThA UMR CNRS 5113), 2010. "Social networks in the entrepreneurial career: life-stories analysis of informal entrepreneurs in Bobo-Dioulasso (Burkina-Faso) (In French)," Cahiers du GREThA 2010-09, Groupe de Recherche en Economie Théorique et Appliquée.

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