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Guanxi, performance and innovation in entrepreneurial service projects

Author

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  • Iván Arribas

    () (ERI-CES)

  • Penélope Hernández

    () (ERI-CES)

  • Jose E. Vila

    () (ERI-CES)

Abstract

This paper analyzes the role played by two dimensions of entrepreneurs’ private social capital in the survival, growth and innovativeness of entrepreneurial service ventures: local size and preferential attachment degree. We build a bi-dimensional measure of social capital based on network models and a methodology to estimate this measure for any group of entrepreneurs. Based on a survey of service entrepreneurs who launched their business in the city of Shanghai, we show that roles played by each dimension are quite different. A large local size of the network increases the chances of survival of the new venture. However, the chance to become a dynamic venture is only related to entrepreneurs’ preferential attachment degree. This finding has relevant political and managerial implications.

Suggested Citation

  • Iván Arribas & Penélope Hernández & Jose E. Vila, 2012. "Guanxi, performance and innovation in entrepreneurial service projects," Discussion Papers in Economic Behaviour 0612, University of Valencia, ERI-CES.
  • Handle: RePEc:dbe:wpaper:0612
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    Cited by:

    1. Huatao Peng & Geert Duysters & Bert Sadowski, 2016. "The changing role of guanxi in influencing the development of entrepreneurial companies: a case study of the emergence of pharmaceutical companies in China," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 215-258, March.

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    Keywords

    social capital; networks; innovation; entrepreneurship;

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