The Effects Of Network’S Structural Holes: Polycentric Institutions, Product Portfolio, And New Venture Growth In China And Russia
AbstractThis study examines the effect of network’s structural holes, i.e., the absence of a link between two contacts who are both linked to an actor, on product development and profit growth of software ventures in two different institutional contexts of China and Russia. Using interview data of 159 software entrepreneurs in Beijing and Moscow, the study found that the effect of structural holes is contingent upon country institutional context and venture development stage. Specifically, structural holes have a positive main effect on product portfolio but a negative main effect on profit growth in the second revenue year - early stage of venture development. Structural holes are more useful in the Russian institutional context compared to the Chinese institutional context due to the polycentricity of institutions. The research implications of the findings are discussed.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp1033.
Date of creation: 01 May 2012
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entrepreneurship; networks; institutions; Russia; China;
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-CSE-2012-06-25 (Economics of Strategic Management)
- NEP-ENT-2012-06-25 (Entrepreneurship)
- NEP-NET-2012-06-25 (Network Economics)
- NEP-TRA-2012-06-25 (Transition Economics)
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