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The role of social capital in the growth of innovative nascent firms: the moderating effect of incubators

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Listed:
  • Valérie François

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, LUMEN - Lille University Management Lab - ULR 4999 - Université de Lille)

  • Christophe Lafaye

    (LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées)

  • Matthieu Belarouci

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

The concept of social capital is increasingly used in entrepreneurship studies to explain the growth of innovative nascent firms. However, empirical findings about the role of social capital (SC) in the growth of young firms have been contradictory to date. We focused on the relational dimension of social capital and differentiated between internal social capital (ISC) and external social capital (ESC). We analysed the perceived utility which is rarely used in SC studies of resources received from the networks of innovative nascent firms in their first six years of existence. We implemented the two-stage least squares (2SLS) analysis to avoid the endogeneity bias. The results indicated that during the early years, nascent firms' external social capital is a decisive resource for growth. This was not the case for internal social capital. We observed that joining an incubator appears to have no impact on either growth or the relationship under study.

Suggested Citation

  • Valérie François & Christophe Lafaye & Matthieu Belarouci, 2021. "The role of social capital in the growth of innovative nascent firms: the moderating effect of incubators," Post-Print halshs-02301947, HAL.
    • Handle: RePEc:hal:journl:halshs-02301947
    DOI: 10.1504/ijeim.2021.10042875
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02301947v1
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