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How exactly do networking Investments pay off? Analyzing the impact of nascent Entrepreneurs networking Investments on Access to Start-Up Resources

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  • Semrau, Thorsten
  • Werner, Arndt

Abstract

It is widely recognized that networks provide access to the resources necessary for founding a business. Up until now, however, the relationship between networking investments and the availability of resources has not been analyzed in depth. Using a sample of 416 nascent entrepreneurs, we address this issue, and provide evidence that networking investments lead to diminishing marginal resource returns in terms of financial, informational, emotional and contact support. Our results also show that resource returns strongly vary with resource type. While emotional support is quite easy to get, many more networking investments are needed to achieve financial support.

Suggested Citation

  • Semrau, Thorsten & Werner, Arndt, 2009. "How exactly do networking Investments pay off? Analyzing the impact of nascent Entrepreneurs networking Investments on Access to Start-Up Resources," MPRA Paper 18350, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:18350
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    References listed on IDEAS

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    More about this item

    Keywords

    Networks; Networking Investments; Resource Access; Nascent Entrepreneurship;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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