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A Theoretical Analysis of the Role of Social Networks in Entrepreneurship

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  • Leyden, Dennis P.

    () (University of North Carolina at Greensboro, Department of Economics)

  • Link, Albert N.

    () (University of North Carolina at Greensboro, Department of Economics)

  • Siegel, Donald S.

    () (University at Albany, SUNY)

Abstract

Entrepreneurship involves innovation and uncertainty. We outline a theory of entrepreneurship, which highlights the importance of social networks in promoting innovation and reducing uncertainty. Our findings suggest that this “social” aspect of entrepreneurship increases the probability of entrepreneurial success. The results also lend credence to theories of entrepreneurship that suggest that entrepreneurial opportunities are formed endogenously by the entrepreneurs who create them. We also consider the public policy implications of our findings.

Suggested Citation

  • Leyden, Dennis P. & Link, Albert N. & Siegel, Donald S., 2013. "A Theoretical Analysis of the Role of Social Networks in Entrepreneurship," UNCG Economics Working Papers 13-22, University of North Carolina at Greensboro, Department of Economics.
  • Handle: RePEc:ris:uncgec:2013_022
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    References listed on IDEAS

    as
    1. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
    2. Bronwyn H. HALL, 2004. "University-Industry Research Partnerships in the United States," Economics Working Papers ECO2004/14, European University Institute.
    3. Dennis Leyden & Albert Link, 2013. "Knowledge spillovers, collective entrepreneurship, and economic growth: the role of universities," Small Business Economics, Springer, vol. 41(4), pages 797-817, December.
    4. Mustar, Philippe & Renault, Marie & Colombo, Massimo G. & Piva, Evila & Fontes, Margarida & Lockett, Andy & Wright, Mike & Clarysse, Bart & Moray, Nathalie, 2006. "Conceptualising the heterogeneity of research-based spin-offs: A multi-dimensional taxonomy," Research Policy, Elsevier, vol. 35(2), pages 289-308, March.
    5. Faulkner, Wendy & Senker, Jacqueline, 1994. "Making sense of diversity: public-private sector research linkage in three technologies," Research Policy, Elsevier, vol. 23(6), pages 673-695, November.
    6. Albert N. Link & Christopher J. Ruhm & Donald S. Siegel, 2014. "Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(2), pages 103-113, March.
    7. Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995. "On the sources and significance of interindustry differences in technological opportunities," Research Policy, Elsevier, vol. 24(2), pages 185-205, March.
    8. Bronwyn H. Hall & Albert N. Link & John T. Scott, 2003. "Universities as Research Partners," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 485-491, May.
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    Citations

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    Cited by:

    1. Jeremy W. Bray & Albert N. Link, 2017. "Dynamic entrepreneurship: On the performance of U.S. research joint ventures," Small Business Economics, Springer, vol. 49(4), pages 785-797, December.
    2. David B. Audretsch & Donald F. Kuratko & Albert N. Link, 2016. "Dynamic entrepreneurship and technology-based innovation," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 603-620, July.
    3. Dennis Leyden & Albert Link, 2015. "Toward a theory of the entrepreneurial process," Small Business Economics, Springer, vol. 44(3), pages 475-484, March.
    4. Silvio Vismara, 2016. "Equity retention and social network theory in equity crowdfunding," Small Business Economics, Springer, vol. 46(4), pages 579-590, April.
    5. Natalie Holden, 2015. "An exploration of interactive contextual and dispositional factors which influence a collective process of entrepreneurial activity: a novel case at Bristol Zoo," Working Papers 27, Birkbeck Centre for Innovation Management Research, revised Nov 2015.
    6. Elias G. Carayannis & Mike Provance & Evangelos Grigoroudis, 2016. "Entrepreneurship ecosystems: an agent-based simulation approach," The Journal of Technology Transfer, Springer, vol. 41(3), pages 631-653, June.
    7. Schøtt, Thomas & Jensen, Kent Wickstrøm, 2016. "Firms’ innovation benefiting from networking and institutional support: A global analysis of national and firm effects," Research Policy, Elsevier, vol. 45(6), pages 1233-1246.
    8. Daniela Ionita & Ionel Dumitru & Mihaela Constantinescu & Stefan Caescu, 2015. "Entrereneurial Clusters in European Union. A Macroeconomic Comparative Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 1-93, February.

    More about this item

    Keywords

    Entrepreneurship; Social networks; Innovation; Technology;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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