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The Functional Diversity and Spillover Effects of Social Capital

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  • Abigail M. Barr

Abstract

Entrepreneurial networks are functionally diverse. They can be used to access information about technologies and markets or to reduce uncertainties. A network's function affects its structure and the nature of the relationship that exists between networking effort and enterprise performance. Networks that reduce uncertainty are small and cohesive. Here, the positive relationship between co-networkers' efforts and own enterprise performance is cancelled out by a negative relationship between own networking effort and enterprise performance. In contrast, the strong positive relationship between own networking effort and enterprise performance within networks designed to provide access to information about technologies and markets dominates the negative relationship between co-networkers' efforts and own enterprise performance. This last relationship is consistent with the existence of negative spillover effects in the second type of network. Copyright 2002, Oxford University Press.

Suggested Citation

  • Abigail M. Barr, 2002. "The Functional Diversity and Spillover Effects of Social Capital," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(1), pages 90-113, March.
  • Handle: RePEc:oup:jafrec:v:11:y:2002:i:1:p:90-113
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    Cited by:

    1. Konno, Tomohiko, 2016. "Knowledge spillover processes as complex networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 1207-1214.
    2. Leaky, R. & Caron. P. & Craufurd, P. & Martin, A. & McDonald, A. & Abedini, W. & Afiff, S. & Bakurin, N. & Bass, S. & Hilbeck, A. & Jansen, T. & Lhaloui, S. & Lock, K. & Newman, J. & Primavesi, O. & S, 2009. "Impacts of AKST on development and sustainability goals," IWMI Books, Reports H042791, International Water Management Institute.
    3. repec:dau:papers:123456789/12204 is not listed on IDEAS
    4. Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2012. "The Solaria syndrome: Social capital in a growing hyper-technological economy," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 802-814.
    5. repec:eee:jcecon:v:45:y:2017:i:4:p:827-846 is not listed on IDEAS
    6. Enid Katungi & Svetlana Edmeades & Melinda Smale, 2008. "Gender, social capital and information exchange in rural Uganda," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(1), pages 35-52.
    7. Romain Houssa & Paul Reding & Albena Sotirova, 2017. "Methodological issues of an impact evaluation of development support in agriculture," BeFinD Working Papers 0120, University of Namur, Department of Economics.
    8. Grimm, Michael & Hartwig, Renate & Lay, Jann, 2017. "Does forced solidarity hamper investment in small and micro enterprises?," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 827-846.
    9. Nordman, Christophe J. & Pasquier-Doumer, Laure, 2015. "Transitions in a West African labour market: The role of family networks," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 74-85.
    10. Arne Bigsten & Mans Söderbom, 2006. "What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa?," World Bank Research Observer, World Bank Group, vol. 21(2), pages 241-265.
    11. Konno, Tomohiko, 2016. "Network effect of knowledge spillover: Scale-free networks stimulate R&D activities and accelerate economic growth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 458(C), pages 157-167.
    12. Jean-Philippe BERROU (GREThA UMR CNRS 5113) & François COMBARNOUS (GREThA UMR CNRS 5113), 2008. "Ties configuration in entrepreneurs’ personal network and economic performances in African urban informal economy," Cahiers du GREThA 2008-25, Groupe de Recherche en Economie Théorique et Appliquée.
    13. Barr, Abigail, 2004. "Forging Effective New Communities: The Evolution of Civil Society in Zimbabwean Resettlement Villages," World Development, Elsevier, vol. 32(10), pages 1753-1766, October.
    14. Christophe Nordman & Laure Pasquier-Doumer, 2013. "Transitions in a West African Labour Market: The Role of Social Networks," Working Papers DT/2013/12, DIAL (Développement, Institutions et Mondialisation).
    15. Egbetokun, Abiodun A., 2015. "Interactive learning and firm-level capabilities in latecomer settings: The Nigerian manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 231-241.
    16. Jean-Philippe BERROU (GREThA UMR CNRS 5113) & Claire GONDARD-DELCROIX (GREThA UMR CNRS 5113), 2010. "Social networks in the entrepreneurial career: life-stories analysis of informal entrepreneurs in Bobo-Dioulasso (Burkina-Faso) (In French)," Cahiers du GREThA 2010-09, Groupe de Recherche en Economie Théorique et Appliquée.
    17. Christophe Jalil Nordman, 2016. "Do family and kinship networks support entrepreneurs?," IZA World of Labor, Institute for the Study of Labor (IZA), pages 262-262, May.
    18. Masakure, Oliver & Cranfield, John & Henson, Spencer, 2008. "The Financial Performance of Non-farm Microenterprises in Ghana," World Development, Elsevier, vol. 36(12), pages 2733-2762, December.
    19. Henriette Dose, 2007. "Securing Household Income among Small-scale Farmers in Kakamega District: Possibilities and Limitations of Diversification," GIGA Working Paper Series 41, GIGA German Institute of Global and Area Studies.
    20. Olivier Walther, 2015. "Social Network Analysis and informal trade," Working Papers 4, University of Southern Denmark, Centre for Border Region Studies.

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