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Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

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  • M. Kamil Kozan

    () (School of Business, St. John Fisher College, 3690 East Avenue, Rochester, NY 14618, USA)

  • Levent Akdeniz

    () (School of Business, Bilkent University, Bilkent, Ankara 06800, Turkey)

Abstract

The study tests whether strong rather than weak ties account for small business growth in Turkey. Data were collected by means of a questionnaire filled out by the owners of small firms operating in four cities. Growth is comprised of two main areas, production expansion and knowledge acquisition. Results show that strong ties are positively related to both types of growth. In contrast, loose ties have no effect on small business growth in either area. This finding is attributed to the influence of the collectivistic nature of the mainstream Turkish culture, where owners of small businesses are likely to rely on in-groups rather than out-groups for advice and for financial support. Implications of relative absence of weak ties for small business growth and innovation in emerging economies are discussed. The findings suggest that culture should be included as a contingency variable in future studies of network strength and growth relationship. The paper also discusses the possible moderating role of affective and cognition-based trust in the relation of strong and weak ties to small business growth.

Suggested Citation

  • M. Kamil Kozan & Levent Akdeniz, 2014. "Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy," Administrative Sciences, MDPI, Open Access Journal, vol. 4(1), pages 1-16, February.
  • Handle: RePEc:gam:jadmsc:v:4:y:2014:i:1:p:35-50:d:32922
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    References listed on IDEAS

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    1. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-674, August.
    2. 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.
    3. Elfring, Tom & Hulsink, Willem, 2003. "Networks in Entrepreneurship: The Case of High-Technology Firms," Small Business Economics, Springer, vol. 21(4), pages 409-422, December.
    4. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
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    Cited by:

    1. Isaac Desta & Abel Tedla & Dawit Zerom, 2015. "Entrepreneurial Networks And Growth In Female-Owned Businesses: Evidence From Small And Medium Scale Enterprises In Eritrea," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-16, December.

    More about this item

    Keywords

    small business growth; entrepreneurship; strong ties; weak ties; networks; Turkey;

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • L - Industrial Organization

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