Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Use and Effect of Social Capital in New Venture Creation - Solo Entrepreneurs vs. New Venture Teams

Contents:

Author Info

  • Uwe Cantner

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Stützer

    ()
    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

This paper examines the use of social capital in the venture creation process. We compare solo entrepreneurs (n=182) and new venture teams (n=274) from a random sample of start-ups in innovative industries and test social capital use and its effects on firm performance. Our results reveal that solo entrepreneurs and new venture teams do not differ in their degree of use of social capital. However, there are differences in the determinants of social capital use in both groups. We find that weak ties assist solo entrepreneurs and have positive significant effects on new venture performance. For team start- ups, we find no direct effect of social capital. However, further tests indicate for teams that human capital variety positively moderates the effect of social capital on performance.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.wiwi.uni-jena.de/Papers/jerp2010/wp_2010_012.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-012.

as in new window
Length:
Date of creation: 24 Feb 2010
Date of revision:
Handle: RePEc:jrp:jrpwrp:2010-012

Contact details of provider:
Postal: Carl-Zeiss-Strasse 3, 07743 JENA
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC

Related research

Keywords: Entrepreneurship; Nascent entrepreneurship; Social capital; Start-up teams; Entrepreneurial learning;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Cooper, Arnold C. & Bruno, Albert V., 1977. "Success among high-technology firms," Business Horizons, Elsevier, Elsevier, vol. 20(2), pages 16-22, April.
  2. Michael Fritsch & Pamela Mueller, 2007. "The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs," Journal of Evolutionary Economics, Springer, Springer, vol. 17(3), pages 299-315, June.
  3. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, Elsevier, vol. 34(6), pages 795-816, August.
  4. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, Wiley Blackwell, vol. 43(4), pages 917-955, 06.
  5. Michael Fritsch, 2004. "Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany," Journal of Evolutionary Economics, Springer, Springer, vol. 14(5), pages 525-542, December.
  6. Chandler, Gaylen N. & Honig, Benson & Wiklund, Johan, 2005. "Antecedents, moderators, and performance consequences of membership change in new venture teams," Journal of Business Venturing, Elsevier, vol. 20(5), pages 705-725, September.
  7. Mikael Samuelsson & Per Davidsson, 2009. "Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures," Small Business Economics, Springer, Springer, vol. 33(2), pages 229-255, August.
  8. Ronstadt, Robert, 1988. "The Corridor Principle," Journal of Business Venturing, Elsevier, vol. 3(1), pages 31-40.
  9. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
  10. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
  11. Batjargal, Bat, 2007. "Internet entrepreneurship: Social capital, human capital, and performance of Internet ventures in China," Research Policy, Elsevier, Elsevier, vol. 36(5), pages 605-618, June.
  12. Shepherd, Dean A. & Douglas, Evan J. & Shanley, Mark, 2000. "New venture survival: Ignorance, external shocks, and risk reduction strategies," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 393-410.
  13. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
  14. Christian Lechner & Michael Dowling, 2003. "Firm networks: external relationships as sources for the growth and competitiveness of entrepreneurial firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(1), pages 1-26, January.
  15. Zoltan Acs & Lawrence Plummer, 2005. "Penetrating the ``knowledge filter'' in regional economies," The Annals of Regional Science, Springer, Springer, vol. 39(3), pages 439-456, 09.
  16. Marco Vivarelli, 2004. "Are All the Potential Entrepreneurs So Good?," Small Business Economics, Springer, Springer, vol. 23(1), pages 41-49, 08.
  17. Chowdhury, Sanjib, 2005. "Demographic diversity for building an effective entrepreneurial team: is it important?," Journal of Business Venturing, Elsevier, vol. 20(6), pages 727-746, November.
  18. Presutti, Manuela & Boari, Cristina & Fratocchi, Luciano, 2007. "Knowledge acquisition and the foreign development of high-tech start-ups: A social capital approach," International Business Review, Elsevier, Elsevier, vol. 16(1), pages 23-46, February.
  19. Benson Honig & Miri Lerner & Yoel Raban, 2006. "Social Capital and the Linkages of High-Tech Companies to the Military Defense System: Is there a Signaling Mechanism?," Small Business Economics, Springer, Springer, vol. 27(4), pages 419-437, December.
  20. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(8), pages 961-975.
  21. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, INFORMS, vol. 48(3), pages 364-381, March.
  22. Elfring, Tom & Hulsink, Willem, 2003. " Networks in Entrepreneurship: The Case of High-Technology Firms," Small Business Economics, Springer, Springer, vol. 21(4), pages 409-22, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Obschonka, Martin & Silbereisen, Rainer K. & Schmitt-Rodermund, Eva & Stuetzer, Michael, 2010. "Nascent entrepreneurship and the developing individual: Early entrepreneurial competence in adolescence and venture creation success during the career," MPRA Paper 32021, University Library of Munich, Germany, revised 21 Dec 2010.
  2. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2010-012. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.