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The role of network density and betweenness centrality in diffusing new venture legitimacy: an epidemiological approach

Author

Listed:
  • James M. Bloodgood

    (Department of Management, College of Business Administration)

  • Jeffrey S. Hornsby

    (University of Missouri–Kansas City)

  • Matthew Rutherford

    (Oklahoma State University)

  • Richard G. McFarland

    (ESSEC Business School)

Abstract

To survive and grow, new ventures must establish initial legitimacy, and subsequently diffuse this legitimacy through a given population. While the notion of initial legitimacy has received substantial attention in the recent literature, diffusion has not. This work endeavors to outline the legitimacy diffusion process via drawing parallels with the field of epidemiology. Ultimately, to effectively diffuse legitimacy (and grow) a firm must gain positive judgments of appropriateness from members of a given network. Importantly, as with diseases, the characteristics of the network are critical to the diffusion process. A relatively dense network is posited to invoke a normative evaluation process by its members, and can be difficult for new ventures to access, but subsequent diffusion of new venture legitimacy can be rapid. A less dense network, on the other hand, is posited to invoke a pragmatic evaluation process by its members, and is likely easier for new ventures to access initially, but may result in lower levels of new venture legitimacy diffusion in the long run. Theoretical and practical implications are discussed.

Suggested Citation

  • James M. Bloodgood & Jeffrey S. Hornsby & Matthew Rutherford & Richard G. McFarland, 2017. "The role of network density and betweenness centrality in diffusing new venture legitimacy: an epidemiological approach," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 525-552, June.
  • Handle: RePEc:spr:intemj:v:13:y:2017:i:2:d:10.1007_s11365-016-0412-9
    DOI: 10.1007/s11365-016-0412-9
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