IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v37y2013i3p539-567.html
   My bibliography  Save this article

The Influence of Changes in Social Capital on Firm–Founding Activities

Author

Listed:
  • Patrick M. Kreiser
  • Pankaj C. Patel
  • James O. Fiet

Abstract

This study examines how founders can manage changes in their network ties during firm founding. We find that an increase in tie strength is negatively associated with founding activities, whereas an increase in the number of ties is positively associated with founding activities. Furthermore, entrepreneurial intensity mitigates the negative relationship between an increase in tie strength and founding activities; and social competence reinforces the positive relationship between an increase in the number of ties and founding activities. Our study contributes to the social capital literature by theorizing and testing how changes in a founder's network structure can be beneficial to founding activities.

Suggested Citation

  • Patrick M. Kreiser & Pankaj C. Patel & James O. Fiet, 2013. "The Influence of Changes in Social Capital on Firm–Founding Activities," Entrepreneurship Theory and Practice, , vol. 37(3), pages 539-567, May.
    • Handle: RePEc:sae:entthe:v:37:y:2013:i:3:p:539-567
    DOI: 10.1111/etap.12039
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/etap.12039
    Download Restriction: no
    File URL: https://libkey.io/10.1111/etap.12039?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Morris, Michael H. & Sexton, Donald L., 1996. "The concept of entrepreneurial intensity: Implications for company performance," Journal of Business Research, Elsevier, vol. 36(1), pages 5-13, May.
    2. Jennifer Sequeira & Stephen L. Mueller & Jeffrey E. Mcgee, 2007. "The Influence Of Social Ties And Self-Efficacy In Forming Entrepreneurial Intentions And Motivating Nascent Behavior," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 275-293.
    3. Duchesneau, Donald A. & Gartner, William B., 1990. "A profile of new venture success and failure in an emerging industry," Journal of Business Venturing, Elsevier, vol. 5(5), pages 297-312, September.
    4. Hisrich, Robert D. & Jankowicz, A. D., 1990. "Intuition in venture capital decisions: An exploratory study using a new technique," Journal of Business Venturing, Elsevier, vol. 5(1), pages 49-62, January.
    5. Jan Inge Jenssen & Harold F. Koenig, 2002. "The Effect of Social Networks on Resource Access and Business Start-ups," European Planning Studies, Taylor & Francis Journals, vol. 10(8), pages 1039-1046, December.
    6. Pankaj C. Patel & James O. Fiet, 2009. "Systematic Search and Its Relationship to Firm Founding," Entrepreneurship Theory and Practice, , vol. 33(2), pages 501-526, March.
    7. James O. Fiet, 2007. "A Prescriptive Analysis of Search and Discovery," Journal of Management Studies, Wiley Blackwell, vol. 44(4), pages 592-611, June.
    8. Baron, Robert A. & Markman, Gideon D., 2003. "Beyond social capital: the role of entrepreneurs' social competence in their financial success," Journal of Business Venturing, Elsevier, vol. 18(1), pages 41-60, January.
    9. Amrit Tiwana, 2008. "Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 29(3), pages 251-272, March.
    10. Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(2), pages 222-240, April.
    11. Donna Marie De Carolis & Patrick Saparito, 2006. "Social Capital, Cognition, and Entrepreneurial Opportunities: A Theoretical Framework," Entrepreneurship Theory and Practice, , vol. 30(1), pages 41-56, January.
    12. William B. Gartner & Barbara J. Bird & Jennifer A. Starr, 1992. "Acting as If: Differentiating Entrepreneurial from Organizational Behavior," Entrepreneurship Theory and Practice, , vol. 16(3), pages 13-32, April.
    13. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
    14. Audretsch, David B. & Bönte, Werner & Keilbach, Max, 2008. "Entrepreneurship capital and its impact on knowledge diffusion and economic performance," Journal of Business Venturing, Elsevier, vol. 23(6), pages 687-698, November.
    15. Niels Bosma & Mirjam van Praag & Roy Thurik & Gerrit de Wit, 2004. "The Value of Human and Social Capital Investments for the Business Performance of Startups," Small Business Economics, Springer, vol. 23(3), pages 227-236, October.
    16. Arent Greve & Janet W. Salaff, 2003. "Social Networks and Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 28(1), pages 1-22, January.
    17. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, September.
    18. Li‐Qun Wei & Jun Liu & Yuan‐Yi Chen & Long‐Zeng Wu, 2010. "Political Skill, Supervisor–Subordinate Guanxi and Career Prospects in Chinese Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 437-454, May.
    19. Marcel Fafchamps, 2002. "Returns to social network capital among traders," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 173-206, April.
    20. Martin Gargiulo & Mario Benassi, 2000. "Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital," Organization Science, INFORMS, vol. 11(2), pages 183-196, April.
    21. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    22. Wayne, Sandy J. & Kacmar, K. Michele, 1991. "The effects of impression management on the performance appraisal process," Organizational Behavior and Human Decision Processes, Elsevier, vol. 48(1), pages 70-88, February.
    23. Milanov, Hana & Fernhaber, Stephanie A., 2009. "The impact of early imprinting on the evolution of new venture networks," Journal of Business Venturing, Elsevier, vol. 24(1), pages 46-61, January.
    24. Howard E. Aldrich & Martha Argelia Martinez, 2001. "Many are Called, but Few are Chosen: An Evolutionary Perspective for the Study of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 25(4), pages 41-56, July.
    25. Man, Thomas W. Y. & Lau, Theresa & Chan, K. F., 2002. "The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies," Journal of Business Venturing, Elsevier, vol. 17(2), pages 123-142, March.
    26. Bat Batjargal, 2010. "Network dynamics and new ventures in China: A longitudinal study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(2), pages 139-153, March.
    27. Wouter Stam, 2010. "Industry Event Participation and Network Brokerage among Entrepreneurial Ventures," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 625-653, June.
    28. Jon Gant & Casey Ichniowski & Kathryn Shaw, 2002. "Social Capital and Organizational Change in High‐Involvement and Traditional Work Organizations," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(2), pages 289-328, June.
    29. Oecd, 2002. "Access for Business," OECD Digital Economy Papers 67, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Soetanto, Danny, 2019. "Examining change in entrepreneurial networks: Using visualisation as an alternative approach," European Management Journal, Elsevier, vol. 37(2), pages 139-150.
    2. Lavlu Mozumdar & Geoffrey Hagelaar & Gerben van der Velde & S.W.F. Omta, 2020. "Determinants of the Business Performance of Women Entrepreneurs in the Developing World Context," J, MDPI, vol. 3(2), pages 1-21, May.
    3. Sahasranamam, Sreevas & Nandakumar, M.K. & Pereira, Vijay & Temouri, Yama, 2021. "Knowledge capital in social and commercial entrepreneurship: Investigating the role of informal institutions," Journal of International Management, Elsevier, vol. 27(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Newbert, Scott L. & Tornikoski, Erno T. & Quigley, Narda R., 2013. "Exploring the evolution of supporter networks in the creation of new organizations," Journal of Business Venturing, Elsevier, vol. 28(2), pages 281-298.
    2. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    3. Bernard Dussuc & Sébastien Geindre, 2012. "Capital social, théorie des réseaux sociaux et recherche en PME : une revue de la littérature," Post-Print halshs-00747912, HAL.
    4. Esther Hormiga PEREZ & Rosa M. Batista CANINO, 2009. "The Importance of the Entrepreneur’s Perception of Success," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(5), pages 990-1010, December.
    5. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    6. Scott Newbert & Erno Tornikoski, 2012. "Supporter networks and network growth: a contingency model of organizational emergence," Small Business Economics, Springer, vol. 39(1), pages 141-159, July.
    7. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    8. Rauch, Andreas & Rosenbusch, Nina & Unger, Jens & Frese, Michael, 2016. "The effectiveness of cohesive and diversified networks: A meta-analysis," Journal of Business Research, Elsevier, vol. 69(2), pages 554-568.
    9. Kerr, Jon & Coviello, Nicole, 2020. "Weaving network theory into effectuation: A multi-level reconceptualization of effectual dynamics," Journal of Business Venturing, Elsevier, vol. 35(2).
    10. Dimo Dimov, 2007. "Beyond the Single-Person, Single-Insight Attribution in Understanding Entrepreneurial Opportunities," Entrepreneurship Theory and Practice, , vol. 31(5), pages 713-731, September.
    11. Justin Tan & Hongjuan Zhang & Liang Wang, 2015. "Network Closure or Structural Hole? The Conditioning Effects of Network–Level Social Capital on Innovation Performance," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1189-1212, September.
    12. Thorsten Semrau & Arndt Werner, 2014. "How Exactly Do Network Relationships Pay Off? The Effects of Network Size and Relationship Quality on Access to Start–Up Resources," Entrepreneurship Theory and Practice, , vol. 38(3), pages 501-525, May.
    13. Yang Song & Leo Paul Dana & Ron Berger, 2021. "The entrepreneurial process and online social networks: forecasting survival rate," Small Business Economics, Springer, vol. 56(3), pages 1171-1190, February.
    14. Thorsten Semrau & Christian Hopp, 2016. "Complementary or compensatory? A contingency perspective on how entrepreneurs’ human and social capital interact in shaping start-up progress," Small Business Economics, Springer, vol. 46(3), pages 407-423, March.
    15. Thor Sigfusson & Simon Harris, 2012. "The relationship formation paths of international entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 325-349, December.
    16. Ha, Mai Phuong, 2014. "The Involvement Of Entreprener’S Networks In Opportunities Exploration And Exploitation Of International New Ventures," OSF Preprints gaxhq, Center for Open Science.
    17. Oasis Kodila-Tedika & Julius Agbor, 2016. "Does Trust Matter for Entrepreneurship: Evidence from a Cross-Section of Countries," Economies, MDPI, vol. 4(1), pages 1-17, March.
    18. Lavlu Mozumdar & Geoffrey Hagelaar & Valentina C. Materia & S. W. F. Omta & Mohammad Amirul Islam & Gerben Velde, 2019. "Embeddedness or Over-Embeddedness? Women Entrepreneurs’ Networks and Their Influence on Business Performance," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1449-1469, December.
    19. Jeffrey M. Pollack & Anthony E. Coy & Jeffrey D. Green & Jody L. Davis, 2015. "Satisfaction, Investment, and Alternatives Predict Entrepreneurs’ Networking Group Commitment and Subsequent Revenue Generation," Entrepreneurship Theory and Practice, , vol. 39(4), pages 817-837, July.
    20. Jarle Aarstad & Sven A. Haugland & Arent Greve, 2010. "Performance Spillover Effects in Entrepreneurial Networks: Assessing a Dyadic Theory of Social Capital," Entrepreneurship Theory and Practice, , vol. 34(5), pages 1003-1020, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:37:y:2013:i:3:p:539-567. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.