IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v34y2010i5p1003-1020.html
   My bibliography  Save this article

Performance Spillover Effects in Entrepreneurial Networks: Assessing a Dyadic Theory of Social Capital

Author

Listed:
  • Jarle Aarstad
  • Sven A. Haugland
  • Arent Greve

Abstract

We study how social capital induces performance spillover effects in an industry network of entrepreneurs building their own hydroelectric micro–power plants. Most of them are farmers and novices living in rural areas. There is a link between social capital and performance at firm level. By expanding the level of analysis to dyads, we find that entrepreneurs lacking social capital can compensate for this through cohesion with colleagues rich in social capital. Entrepreneurs can also benefit by mimicking the networking patterns of successful colleagues, gaining access to equivalent resources developed in the niche.

Suggested Citation

  • Jarle Aarstad & Sven A. Haugland & Arent Greve, 2010. "Performance Spillover Effects in Entrepreneurial Networks: Assessing a Dyadic Theory of Social Capital," Entrepreneurship Theory and Practice, , vol. 34(5), pages 1003-1020, September.
    • Handle: RePEc:sae:entthe:v:34:y:2010:i:5:p:1003-1020
    DOI: 10.1111/j.1540-6520.2009.00346.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2009.00346.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2009.00346.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    2. Deborah Che & Ann Veeck & Gregory Veeck, 2005. "Sustaining production and strengthening the agritourism product: Linkages among Michigan agritourism destinations," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(2), pages 225-234, June.
    3. Bruderl, Josef & Preisendorfer, Peter, 1998. "Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-225, May.
    4. Scott Shane & Toby Stuart, 2002. "Organizational Endowments and the Performance of University Start-ups," Management Science, INFORMS, vol. 48(1), pages 154-170, January.
    5. Africa Ariño & José de la Torre, 1998. "Learning from Failure: Towards an Evolutionary Model of Collaborative Ventures," Organization Science, INFORMS, vol. 9(3), pages 306-325, June.
    6. James Moody & Douglas R. White, 2000. "Structural Cohesion and Embeddedness: A Hierarchical Conception of Social Groups," Working Papers 00-08-049, Santa Fe Institute.
    7. Elena Huergo & Jordi Jaumandreu, 2004. "How Does Probability of Innovation Change with Firm Age?," Small Business Economics, Springer, vol. 22(3_4), pages 193-207, April.
    8. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    9. Baron, Robert A., 1998. "Cognitive mechanisms in entrepreneurship: why and when enterpreneurs think differently than other people," Journal of Business Venturing, Elsevier, vol. 13(4), pages 275-294, July.
    10. Herminia Ibarra & Martin Kilduff & Wenpin Tsai, 2005. "Zooming In and Out: Connecting Individuals and Collectivities at the Frontiers of Organizational Network Research," Organization Science, INFORMS, vol. 16(4), pages 359-371, August.
    11. David Dekker & David Krackhardt & Tom Snijders, 2007. "Sensitivity of MRQAP Tests to Collinearity and Autocorrelation Conditions," Psychometrika, Springer;The Psychometric Society, vol. 72(4), pages 563-581, December.
    12. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
    13. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    14. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Justin Tan & Hongjuan Zhang & Liang Wang, 2015. "Network Closure or Structural Hole? The Conditioning Effects of Network–Level Social Capital on Innovation Performance," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1189-1212, September.
    2. 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.
    3. Salih Zeki Ozdemir & Peter Moran & Xing Zhong & Martin J. Bliemel, 2016. "Reaching and Acquiring Valuable Resources: The Entrepreneur's Use of Brokerage, Cohesion, and Embeddedness," Entrepreneurship Theory and Practice, , vol. 40(1), pages 49-79, January.
    4. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    5. Thorsten Semrau & Arndt Werner, 2014. "How Exactly Do Network Relationships Pay Off? The Effects of Network Size and Relationship Quality on Access to Start–Up Resources," Entrepreneurship Theory and Practice, , vol. 38(3), pages 501-525, May.
    6. Jintong Tang & Zhi Tang & Jerome A. Katz, 2014. "Proactiveness, Stakeholder–Firm Power Difference, and Product Safety and Quality of Chinese SMEs," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1-29, September.
    7. Bhagavatula, Suresh & Elfring, Tom & van Tilburg, Aad & van de Bunt, Gerhard G., 2010. "How social and human capital influence opportunity recognition and resource mobilization in India's handloom industry," Journal of Business Venturing, Elsevier, vol. 25(3), pages 245-260, May.
    8. Yang Song & Leo Paul Dana & Ron Berger, 2021. "The entrepreneurial process and online social networks: forecasting survival rate," Small Business Economics, Springer, vol. 56(3), pages 1171-1190, February.
    9. Megan K. Haller & Eric W. Welch, 2014. "Entrepreneurial Behavior of Academic Scientists: Network and Cognitive Determinants of Commitment to Grant Submissions and Award Outcomes," Entrepreneurship Theory and Practice, , vol. 38(4), pages 807-831, July.
    10. Kerr, Jon & Coviello, Nicole, 2020. "Weaving network theory into effectuation: A multi-level reconceptualization of effectual dynamics," Journal of Business Venturing, Elsevier, vol. 35(2).
    11. M. Kamil Kozan & Levent Akdeniz, 2014. "Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy," Administrative Sciences, MDPI, vol. 4(1), pages 1-16, February.
    12. Jean–Luc Arregle & Bat Batjargal & Michael A. Hitt & Justin W. Webb & Toyah Miller & Anne S. Tsui, 2015. "Family Ties in Entrepreneurs’ Social Networks and New Venture Growth," Entrepreneurship Theory and Practice, , vol. 39(2), pages 313-344, March.
    13. Müge Özman, 2007. "Network Formation and Strategic Firm Behaviour to Explore and Exploit," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 11(1), pages 1-7.
    14. 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.
    15. Giuliani, Elisa & Pietrobelli, Carlo, 2014. "Social Network Analysis Methodologies for the Evaluation of Cluster Development Programs," Papers in Innovation Studies 2014/11, Lund University, CIRCLE - Centre for Innovation Research.
    16. Nicos Nicolaou & Sue Birley, 2003. "Social Networks in Organizational Emergence: The University Spinout Phenomenon," Management Science, INFORMS, vol. 49(12), pages 1702-1725, December.
    17. Ravasi, Davide & Turati, Carlo, 2005. "Exploring entrepreneurial learning: a comparative study of technology development projects," Journal of Business Venturing, Elsevier, vol. 20(1), pages 137-164, January.
    18. Pinar Ozcan, 2018. "Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 295-328, February.
    19. Vershinina, Natalia & Rodgers, Peter & Tarba, Shlomo & Khan, Zaheer & Stokes, Peter, 2020. "Gaining legitimacy through proactive stakeholder management: The experiences of high-tech women entrepreneurs in Russia," Journal of Business Research, Elsevier, vol. 119(C), pages 111-121.
    20. Dossou, Smith A.R. & Aoudji, Augustin K. N. & Vissoh, Pierre & Zannou, Afio, 2021. "Effect of Social Networks and Performance of Young Women Agribusiness Owners in a Developing Country: The Moderating Effect of Business Environment," 2021 Conference, August 17-31, 2021, Virtual 315361, International Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:34:y:2010:i:5:p:1003-1020. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.