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Embeddedness or Over-Embeddedness? Women Entrepreneurs’ Networks and Their Influence on Business Performance

Author

Listed:
  • Lavlu Mozumdar

    (Bangladesh Agricultural University
    Wageningen University)

  • Geoffrey Hagelaar

    (Wageningen University)

  • Valentina C. Materia

    (Wageningen University)

  • S. W. F. Omta

    (Wageningen University)

  • Mohammad Amirul Islam

    (Bangladesh Agricultural University)

  • Gerben Velde

    (Wageningen University)

Abstract

We analyse in what ways network embeddedness may influence the business performance of women entrepreneurs working in a socially constrained context. Data were collected through a survey sent to 292 women entrepreneurs engaged in handicraft businesses in Bangladesh. Results from multiple regression models show that, next to entrepreneurial orientation, financial capital and business experience, a small network is positively related, while medium-sized and large networks are negatively related, to performance. In-depth analysis reveals that a small bonding ties network is positively, while a medium-sized bonding ties network is negatively, and a large bonding ties network is not, statistically related to performance. Based on this, we assume that the networks of many women entrepreneurs may be over-embedded, because of too extensive connections with family and friends. Apparently, the over-embeddedness proposition of Uzzi (Am Sociol Rev 61:674–698, 1996) proves to be valid for women entrepreneurs operating under socially constrained circumstances in a developing country.

Suggested Citation

  • Lavlu Mozumdar & Geoffrey Hagelaar & Valentina C. Materia & S. W. F. Omta & Mohammad Amirul Islam & Gerben Velde, 2019. "Embeddedness or Over-Embeddedness? Women Entrepreneurs’ Networks and Their Influence on Business Performance," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1449-1469, December.
    • Handle: RePEc:pal:eurjdr:v:31:y:2019:i:5:d:10.1057_s41287-019-00217-3
    DOI: 10.1057/s41287-019-00217-3
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