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Social Capital Through Networks: The Case Of University Spin‐Off Firms In Different Stages

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  • DANNY P. SOETANTO
  • MARINA VAN GEENHUIZEN

Abstract

University spin-off firms in their first, often critical, years face a shortage of basic resources needed for growth. A major way of gaining such resources is through knowledge derived from social networks. However, social networks may be quite different in nature such that the influence of these networks on growth of university spin‐offs may vary, like according to tightness, strength, social heterogeneity and spatial proximity of network partners. In this paper, we first examine theoretical ideas on social capital and the role of social networks. This is followed by an empirical study of university spin‐off firms to explore differences in social networks between two development stages and to estimate the influence of network characteristics on growth in these stages. Early stage spin‐offs tend to employ networks dominated by tightness, strong relationships, more homogeneous partners and local partners, whereas networks of spin‐offs in later stages tend to face clearly contrasting features. Furthermore, network characteristics tend to influence growth mainly in years following the early stage, with a positive influence of social capital in networks that are relatively open to new knowledge and information.

Suggested Citation

  • Danny P. Soetanto & Marina Van Geenhuizen, 2010. "Social Capital Through Networks: The Case Of University Spin‐Off Firms In Different Stages," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(5), pages 509-520, December.
  • Handle: RePEc:bla:tvecsg:v:101:y:2010:i:5:p:509-520
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    File URL: http://hdl.handle.net/10.1111/j.1467-9663.2010.00632.x
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    Citations

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    Cited by:

    1. Mariluz Fernández-Alles & Carmen Camelo-Ordaz & Noelia Franco-Leal, 2015. "Key resources and actors for the evolution of academic spin-offs," The Journal of Technology Transfer, Springer, vol. 40(6), pages 976-1002, December.
    2. Danny Soetanto & Sarah Jack, 2013. "Business incubators and the networks of technology-based firms," The Journal of Technology Transfer, Springer, vol. 38(4), pages 432-453, August.
    3. Haijun Bao & Xiaoting Zhu & Yingying Cen & Yi Peng & Jibin Xue, 2018. "Effects of Social Network on Human Capital of Land-Lost Farmers: A Study in Zhejiang Province," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 167-187, May.
    4. Noelia Franco-Leal & Danny Soetanto & Carmen Camelo-Ordaz, 2016. "Do they matter? The role of non-academics in the internationalization of academic spin-offs," Journal of International Entrepreneurship, Springer, vol. 14(3), pages 410-440, September.
    5. Hans Westlund & Johan P. Larsson & Amy Rader Olsson, 2014. "Start-ups and Local Entrepreneurial Social Capital in the Municipalities of Sweden," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 974-994, June.
    6. Chris P. Eveleens & Frank J. Rijnsoever & Eva M. M. I. Niesten, 2017. "How network-based incubation helps start-up performance: a systematic review against the background of management theories," The Journal of Technology Transfer, Springer, vol. 42(3), pages 676-713, June.

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