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How exactly do networking Investments pay off? Analyzing the impact of nascent Entrepreneurs networking Investments on Access to Start-Up Resources

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Author Info
Semrau, Thorsten
Werner, Arndt
Abstract

It is widely recognized that networks provide access to the resources necessary for founding a business. Up until now, however, the relationship between networking investments and the availability of resources has not been analyzed in depth. Using a sample of 416 nascent entrepreneurs, we address this issue, and provide evidence that networking investments lead to diminishing marginal resource returns in terms of financial, informational, emotional and contact support. Our results also show that resource returns strongly vary with resource type. While emotional support is quite easy to get, many more networking investments are needed to achieve financial support.

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File URL: http://mpra.ub.uni-muenchen.de/18350/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18350.

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Date of creation: 01 Jun 2009
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Handle: RePEc:pra:mprapa:18350

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Related research
Keywords: Networks; Networking Investments; Resource Access; Nascent Entrepreneurship;

Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups

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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.:
  1. Zhao, Liming & Aram, John D., 1995. "Networking and growth of young technology-intensive ventures in China," Journal of Business Venturing, Elsevier, vol. 10(5), pages 349-370, September. [Downloadable!] (restricted)
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  3. Watson, John, 2007. "Modeling the relationship between networking and firm performance," Journal of Business Venturing, Elsevier, vol. 22(6), pages 852-874, November. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Bruderl, Josef & Preisendorfer, Peter, 1998. " Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-25, May. [Downloadable!] (restricted)
  6. Paul D. Reynolds & Nancy M. Carter & William B. Gartner & Patricia G. Greene, 2004. "The Prevalence of Nascent Entrepreneurs in the United States: Evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 23(4), pages 263-284, November. [Downloadable!]
  7. Monica Diochon & Teresa V. Menzies & Yvon Gasse, 2008. "Exploring The Nature And Impact Of Gestation-Specific Human Capital Among Nascent Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 151-165. [Downloadable!] (restricted)
  8. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August. [Downloadable!] (restricted)
  9. Carter, Nancy M. & Gartner, William B. & Reynolds, Paul D., 1996. "Exploring start-up event sequences," Journal of Business Venturing, Elsevier, vol. 11(3), pages 151-166, May. [Downloadable!] (restricted)
  10. Michael N. Mitchell & Xiao Chen, 2005. "Visualizing main effects and interactions for binary logit models," Stata Journal, StataCorp LP, vol. 5(1), pages 64-82, March. [Downloadable!]
  11. Brush, Candida G. & Vanderwerf, Pieter A., 1992. "A comparison of methods and sources for obtaining estimates of new venture performance," Journal of Business Venturing, Elsevier, vol. 7(2), pages 157-170, March. [Downloadable!] (restricted)
  12. Duchesneau, Donald A. & Gartner, William B., 1990. "A profile of new venture success and failure in an emerging industry," Journal of Business Venturing, Elsevier, vol. 5(5), pages 297-312, September. [Downloadable!] (restricted)
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