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Building entrepreneurial inter-firm networks in an emerging economy: the role of cognitive legitimacy

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Listed:
  • Wafa N. Almobaireek

    (King Saud University)

  • Ahmed A. Alshumaimeri

    (King Saud University)

  • Tatiana S. Manolova

    (Bentley University)

Abstract

We take an organizational legitimacy perspective and use data from a large-scale nationally representative study on the state of small business in Saudi Arabia, in order to explore the antecedents to the formation of entrepreneurial ventures’ inter-firm networks in the context of an emerging economy (n = 331). We argue that entrepreneurial ventures need to overcome a threshold of cognitive legitimacy in order to develop inter-firm ties with a diverse set of large, established firms. Results indicate that having a written business plan and a formal organizational structure are positively associated with the diversity of the new venture’s inter-firm network, while the education level of the entrepreneur does not have a significant effect. In addition, the effect of having a formal organizational structure is stronger for younger ventures. Implications are discussed.

Suggested Citation

  • Wafa N. Almobaireek & Ahmed A. Alshumaimeri & Tatiana S. Manolova, 2016. "Building entrepreneurial inter-firm networks in an emerging economy: the role of cognitive legitimacy," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 87-114, March.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:1:d:10.1007_s11365-014-0322-7
    DOI: 10.1007/s11365-014-0322-7
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