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Software Entrepreneurship: Knowledge Networks And Performance Of Software Ventures In China And Russia

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  • BAT BATJARGAL

Abstract

This study examines the impact of entrepreneurs??? network structure and knowledge homogeneity/heterogeneity of their network members on product development, and revenue growth of software ventures in China and Russia. The empirical data are composed of structured interviews with 159 software entrepreneurs in Beijing and Moscow. The study found that structural holes and knowledge heterogeneity affect positively product diversity in interactive ways. The study also found that knowledge homogeneity accelerates product development. Product development speed enhances revenue growth in the long term. However, the combination of speed with dense and homogeneous networks harms revenue growth over time. The effects of structural holes and knowledge heterogeneity on product diversity and revenue growth over time are more salient in Russia due to the unique institutional, social, and cultural conditions present in the country.

Suggested Citation

  • Bat Batjargal, 2005. "Software Entrepreneurship: Knowledge Networks And Performance Of Software Ventures In China And Russia," William Davidson Institute Working Papers Series wp751, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2005-751
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/40137/3/wp751.pdf
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    References listed on IDEAS

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    10. Bat Batjargal & Mannie (Manhong) Liu, 2004. "Entrepreneurs’ Access to Private Equity in China: The Role of Social Capital," Organization Science, INFORMS, vol. 15(2), pages 159-172, April.
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    Cited by:

    1. Batjargal, Bat, 2007. "Internet entrepreneurship: Social capital, human capital, and performance of Internet ventures in China," Research Policy, Elsevier, vol. 36(5), pages 605-618, June.

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    More about this item

    Keywords

    networks; knowledge; entrepreneurs; software; China; Russia.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • P27 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Performance and Prospects

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