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Minority Business Networks As Sources Of Social Capital For Minority Firms

Author

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  • IAN Y. BLOUNT

    (The Ohio State University, The John Glenn School of Public Affairs, 1810 College Road, Columbus, Ohio 43210, USA)

  • DELMONIZE A. SMITH

    (Rochester Institute of Technology, Saunders College of Business, 105 Lomb Memorial Drive, Rochester, New York 14623, USA)

  • JAMES A. HILL

    (The Ohio State University, The Max Fisher School of Business, 2100 Neil Avenue, Columbus, Ohio 43210, USA)

Abstract

Much of our understanding concerning minority-owned firms is based on nascent entrepreneurial businesses. Therefore, it is difficult to answer the question of how a minority-owned firm's age and size may influence the social capital derived from a minority business network. We utilize a resource-dependence perspective to hypothesize that the social capital derived from participation in a minority business network will be negatively related to the minority-owned firm's age and size. We find that firm size (as measured by revenue and number of employees) is negatively related with social capital derived from the minority business network. Our findings may help minority business owners understand the relative value of membership in minority business networks before committing limited resources.

Suggested Citation

  • Ian Y. Blount & Delmonize A. Smith & James A. Hill, 2013. "Minority Business Networks As Sources Of Social Capital For Minority Firms," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1-13.
    • Handle: RePEc:wsi:jdexxx:v:18:y:2013:i:03:n:s1084946713500192
    DOI: 10.1142/S1084946713500192
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    References listed on IDEAS

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    1. Robert W. Fairlie & Alicia M. Robb, 2008. "Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States," MIT Press Books, The MIT Press, edition 1, volume 1, number 026206281x, December.
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    Cited by:

    1. Rosanna Garcia & Daniel W. Baack, 2023. "The Invisible Racialized Minority Entrepreneur: Using White Solipsism to Explain the White Space," Journal of Business Ethics, Springer, vol. 188(3), pages 397-418, December.
    2. Pan, Mengyang & Hill, James & Blount, Ian & Rungtusanatham, Manus, 2022. "Relationship building and minority business growth: Does participating in activities sponsored by institutional intermediaries help?," Journal of Business Research, Elsevier, vol. 142(C), pages 830-843.
    3. Ian Blount & Mingxiang Li, 2021. "How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 3-24, July.
    4. Yoon G. Lee & Margaret A. Fitzgerald & Kenneth R. Bartkus, 2017. "Adjustment Strategy Use in Minority Family Businesses: Differences Across Gender," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 1-17, March.

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