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The Selective Nature of Innovator Networks: From the Nascent to the Early Growth Phase of the Organizational Life Cycle

In: Entrepreneurship and the Industry Life Cycle

Author

Listed:
  • Uwe Cantner

    (Friedrich Schiller University Jena
    University of Southern Denmark)

  • Tina Wolf

    (Friedrich Schiller University Jena)

Abstract

Earlier studies have shown that entrepreneurs play a key role in shaping regional development. Innovator networks where these entrepreneurs are members of, have been identified as one among many critical factors for their firms’ success. This paper intents to go one step further and analyses in how far differing characteristics of these networks lead to different firm performances along the early stages of the organizational life cycle (nascent stage, emergent stage, early growth stage). A sample of 149 innovative firms in Thuringia is analysed, using data from the commercial register and the German patent office. The results show that there is an inverted u-shaped relationship between the chances of a firm to survive and the connectivity of the network the firms are connected to but only in the later stage of the early organizational life cycle; while the structure of the ego-network never plays a role. A quite central position in the network shows-up to be unfavourable.

Suggested Citation

  • Uwe Cantner & Tina Wolf, 2018. "The Selective Nature of Innovator Networks: From the Nascent to the Early Growth Phase of the Organizational Life Cycle," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: Serena Cubico & Giuseppe Favretto & João Leitão & Uwe Cantner (ed.), Entrepreneurship and the Industry Life Cycle, pages 175-204, Springer.
    • Handle: RePEc:spr:seschp:978-3-319-89336-5_8
    DOI: 10.1007/978-3-319-89336-5_8
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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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