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Are social networks more important for new business activity in emerging than developed economies? An empirical extension

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  • Danis, Wade M.
  • De Clercq, Dirk
  • Petricevic, Olga

Abstract

To extend prior theoretical and empirical work in the IB and entrepreneurship fields, this study examines how fundamentally different institutional conditions in emerging versus developed economies may clarify variations in the level of new business activity across countries. The empirical results support the argument that social networks are more important for new business activity in emerging than in developed economies. Furthermore, in emerging economies, the relationship between associational activity and new business activity is stronger for countries with higher regulatory and normative institutional burdens, whereas these moderator effects are absent in developed economies. The study's findings offer important implications for research and practice.

Suggested Citation

  • Danis, Wade M. & De Clercq, Dirk & Petricevic, Olga, 2011. "Are social networks more important for new business activity in emerging than developed economies? An empirical extension," International Business Review, Elsevier, vol. 20(4), pages 394-408, August.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:4:p:394-408
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    Cited by:

    1. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    2. White, George O. & Hemphill, Thomas A. & Joplin, Janice R.W. & Marsh, Laurence A., 2014. "Wholly owned foreign subsidiary relation-based strategies in volatile environments," International Business Review, Elsevier, pages 303-312.
    3. Schmutzler, Jana & Andonova, Veneta & Díaz Serrano, Lluís, 2015. "When culture does (not) matter: role models and self-efficacy as drivers of entrepreneurial behavior," Working Papers 2072/247806, Universitat Rovira i Virgili, Department of Economics.
    4. repec:gem:wpaper:1201 is not listed on IDEAS
    5. Smith, Adam & Judge, William & Pezeshkan, Amir & Nair, Anil, 2016. "Institutionalizing entrepreneurial expertise in subsistence economies," Journal of World Business, Elsevier, vol. 51(6), pages 910-922.
    6. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    7. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

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