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Guanxi, performance and innovation in entrepreneurial service projects

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Author Info

  • Iván Arribas

    ()
    (ERI-CES)

  • Penélope Hernández

    ()
    (ERI-CES)

  • Jose E. Vila

    ()
    (ERI-CES)

Abstract

This 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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File URL: http://www.uv.es/erices/RePEc/WP/2012/0612.pdf
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Bibliographic Info

Paper provided by University of Valencia, ERI-CES in its series Discussion Papers in Economic Behaviour with number 0612.

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Date of creation: Sep 2012
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Handle: RePEc:dbe:wpaper:0612

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Keywords: social capital; networks; innovation; entrepreneurship;

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