Guanxi, performance and innovation in entrepreneurial service projects
AbstractThis paper analyzes the role played by two dimensions of entrepreneurs’ private social capital in the survival, growth and innovativeness of entrepreneurial service ventures: local size and preferential attachment degree. We build a bi-dimensional measure of social capital based on network models and a methodology to estimate this measure for any group of entrepreneurs. Based on a survey of service entrepreneurs who launched their business in the city of Shanghai, we show that roles played by each dimension are quite different. A large local size of the network increases the chances of survival of the new venture. However, the chance to become a dynamic venture is only related to entrepreneurs’ preferential attachment degree. This finding has relevant political and managerial implications.
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Bibliographic InfoPaper provided by University of Valencia, ERI-CES in its series Discussion Papers in Economic Behaviour with number 0612.
Date of creation: Sep 2012
Date of revision:
social capital; networks; innovation; entrepreneurship;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-CSE-2012-09-30 (Economics of Strategic Management)
- NEP-ENT-2012-09-30 (Entrepreneurship)
- NEP-INO-2012-09-30 (Innovation)
- NEP-KNM-2012-09-30 (Knowledge Management & Knowledge Economy)
- NEP-NET-2012-09-30 (Network Economics)
- NEP-PPM-2012-09-30 (Project, Program & Portfolio Management)
- NEP-SOC-2012-09-30 (Social Norms & Social Capital)
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