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How Entrepreneurs use Networks to Address Changing Resource Requirements during Early Venture Development

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  • Diane M. Sullivan
  • Cameron M. Ford

Abstract

Access to resources is a key challenge facing entrepreneurs during early venture development. Entrepreneurs’ networks serve as a principal means of identifying and acquiring needed resources. However, different stages of venture development may address different resource dependencies, suggesting entrepreneurs’ networks may need to change to meet changing resource requirements. By employing network theory and resource–dependence theory, we investigate how entrepreneurs may use networks to address changing resource needs during early venture development. Results illustrate how structural characteristics of entrepreneurs’ networks at venture launch are associated with network structure and content in early venture development in ways that may promote access to newly needed resources.

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  • Diane M. Sullivan & Cameron M. Ford, 2014. "How Entrepreneurs use Networks to Address Changing Resource Requirements during Early Venture Development," Entrepreneurship Theory and Practice, , vol. 38(3), pages 551-574, May.
    • Handle: RePEc:sae:entthe:v:38:y:2014:i:3:p:551-574
    DOI: 10.1111/etap.12009
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    9. Zou, Na & Storz, Cornelia, 2023. "Why do some entrepreneurs thrive? A network content perspective," Journal of Business Research, Elsevier, vol. 161(C).
    10. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
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    13. Samuel Mayanja & Michael Omeke & Josue Vajeru Tibamwenda & Henry Mutebi & Fredrick Mufta, 2021. "The mediating role of the novelty ecosystem between personality traits, entrepreneurial networks and entrepreneurial ambidexterity among small and medium enterprises," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 379-395, December.
    14. Shivalik Singh & M H Bala Subrahmanya, 2022. "The financial requirements of tech startups over its lifecycle in Bangalore: An analysis of why and how do they differ?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 4123-4141, October.
    15. Shanshan Qian & Dalong Ma & Chao Miao, 2016. "Deciding To Discover Entrepreneurial Opportunities: A Multi-Level Investigation Based On Informational Economics And Resource Dependence Theory," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-19, June.
    16. Hadjielias, Elias & Dada, Olufunmilola (Lola) & Eliades, Kostas, 2021. "Entrepreneurial process in international multiunit franchise outlets: A social capital perspective," Journal of Business Research, Elsevier, vol. 134(C), pages 13-28.
    17. Russell E. Browder & Stella Seyb & Angela Forgues & Howard E. Aldrich, 2023. "Pandemic Makers: How Citizen Groups Mobilized Resources to Meet Local Needs in a Global Health Crisis," Entrepreneurship Theory and Practice, , vol. 47(3), pages 964-997, May.
    18. König, Marc & Ungerer, Christina & Baltes, Guido & Terzidis, Orestis, 2019. "Different patterns in the evolution of digital and non-digital ventures' business models," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 844-852.
    19. Pruthi, Sarika, 2014. "Social ties and venture creation by returnee entrepreneurs," International Business Review, Elsevier, vol. 23(6), pages 1139-1152.
    20. Shepherd, Dean A. & Sattari, Rose & Patzelt, Holger, 2022. "A social model of opportunity development: Building and engaging communities of inquiry," Journal of Business Venturing, Elsevier, vol. 37(1).
    21. Agnihotri, Arpita & Bhattacharya, Saurabh & Jafari-Sadeghi, Vahid, 2023. "Combatting global disruption through tertius iungens orientation of CEOs: A moderated-mediated mechanism," Journal of International Management, Elsevier, vol. 29(5).
    22. Marc König & Manon Enjolras & Christina Ungerer & Mauricio Camargo & Guido Baltes, 2022. "Evaluation of tech ventures' evolving business models: rules for performance-related classification," Post-Print hal-03685241, HAL.
    23. Maksim Belitski & Pınar Büyükbalci, 2021. "Uncharted waters of the entrepreneurial ecosystems research: Comparing Greater Istanbul and Reading ecosystems," Growth and Change, Wiley Blackwell, vol. 52(2), pages 727-750, June.

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