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The Use Of Social Network Theory On Entrepreneur’S Linkages Development


  • Mastura JAAFAR

    () (School of Housing Building and Planning Universiti Sains Malaysia, Penang, Malaysia)

  • Abdul-Rashid ABDUL-AZIZ

    () (School of Housing Building and Planning Universiti Sains Malaysia, Penang, Malaysia)

  • Muhammad-Hijas SAHARI

    () (School of Housing Building and Planning Universiti Sains Malaysia, Penang, Malaysia)


To embark on any housing project, a developer needs to have support from various parties. The housing and construction industries are interrelated; they are in a relationship where construction plays a major part in the development process. Housing developers need to have strong support from the contractor, consultant, and suppliers (CCS) in completing their project. Studying the CCS selection methods can enhance the knowledge on the application of the social network theory (SNT) in the housing industry. Questionnaires were posted to 600 private housing developers (PHDs) and 54 were returned. Findings conclude that social factors were given mediate priority in consultant and contractor selection but non-social factors were more dominant in material supplier’s selection. Before start-up, PHDs get more advice from their strong ties (family/relatives/close friends) in selecting the most suitable CCS; while at the start-up and later stage, PHDs get more advice from weak ties (individual/s from the same industry and their acquaintances). PHDs place their personal trust more on the strong ties providing information related to CCS.

Suggested Citation

  • Mastura JAAFAR & Abdul-Rashid ABDUL-AZIZ & Muhammad-Hijas SAHARI, 2009. "The Use Of Social Network Theory On Entrepreneur’S Linkages Development," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 4(1S), pages 101-119, April.
  • Handle: RePEc:rom:terumm:v:4:y:2009:i:1s:p:101-119

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    References listed on IDEAS

    1. Johannisson, Bengt, 1988. "Business formation -- a network approach," Scandinavian Journal of Management, Elsevier, vol. 4(3-4), pages 83-99.
    2. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-548, June.
    3. Bruderl, Josef & Preisendorfer, Peter, 1998. "Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-225, May.
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    More about this item


    Social Network Theory (SNT); housing developers; consultant; contractor; and supplier;

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General


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