Session 225

Entrepreneurial Networks: Formation and Implications

Track K

Date: Tuesday, September 23, 2014


Time: 15:30 – 16:45

Common Ground

Room: Budapest


  • William Hesterly, University of Utah

Title: Consensus on Entrepreneurial Networking Strategies in China, Taiwan, and the US


  • Xin Yao, University of Colorado-Boulder
  • Josh Keller, Nanyang Technological University
  • Renhong Zhu, Sun Yat-Sen University
  • Hsieh Ru-Mei, National Pingtung University of Science and Technology

Abstract: Research on entrepreneurial networks has long wrestled with the question of agency. To bring in the role of culture and institutions in the construction of entrepreneurial agency in networking, we examine the consensus among entrepreneurs on networking strategies in three institutional environments. Combining interviews of 72 entrepreneurs and a survey of 297 entrepreneurs in China, Taiwan, and the US, we examined whether there was consensus on network-level and dyad-level entrepreneurial networking strategies. Using cultural consensus analysis, we found consensus on network-level strategies in stable formal institutional environments (US & Taiwan) while consensus on dyad-level strategies in tight informal institutional environments (China & Taiwan). Implications of our findings for research on entrepreneurial networks and the role of culture and institutions in entrepreneurship are discussed.

Title: Immigrants Entrepreneurial Networks Evolution Over Time


  • Jorge Humberto Mejia, HEC Montreal

Abstract: This study examines how the entrepreneurial network of French immigrants evolves from its origin in Mexico. Using a longitudinal single-embedded case study I identify two different scenarios that emerging firms might face when they become part of a network: either the firm is created along the network, or while the network is under development. Additionally, the interplay between the institutions created by this network and its members shows the emergence and development of its own “ecosystem” to fit different types of institutional instability and to influence the institutional system. Thus, this paper extends current literature on network development by exploring for the first time network evolution beyond early stages.

Title: Learning from Failure and Success: The Moderating Role of Diversity of Experiences


  • Annelies Bobelyn, Erasmus University-Rotterdam

Abstract: The idea that organizations can improve their performance by learning from own past experiences and the experience of others is widely accepted. Some studies have explored the differences between learning from success versus learning from failure, while others have stressed the importance of similarity or diversity of experience. This paper combines the debate on both issues by investigating how learning from success versus failure interacts with learning from similar versus diverse experiences. The results indicate that success experiences of the venture capitalist have a positive effect on the likelihood of successful exit of subsequent portfolio companies. We further find that diversity of IPO experience has a positive effect on IPO hazard, while diversity of trade sale experience has a negative effect.

Title: The Impact of Investment Networks on Venture Capital Firm Performance: A Contingency Framework


  • Cristiano Bellavitis, National Research University
  • Igor Filatotchev, City University London
  • Vangelis Souitaris, City University London

Abstract: Venture capital (VC) syndicates involve repeated transactions among partners and, therefore, they possess network-like characteristics. Although networks provide access to important resources, extant literature did not study the impact of the focal firm’s resource endowment on the performance benefits arising from different network structures. We investigate the moderating impact of firm’s maturity and status as proxies for internal and external resources on the relationship between network cohesion and VC performance. Analyzing a dataset of UK VC investments (1998-2012) we find that mature and high status VCs benefit less from network cohesion. We also show that these moderating effects are reinforcing each other.

Title: The Use of Advisory Boards for Networking Activities in Entrepreneurial Firms


  • Eric Weber, HHL Leipzig Graduate School of Management
  • Andreas Pinkwart, HHL Leipzig Graduate School of Management

Abstract: Entrepreneurs are embedded in networks with different structures, in which interactions with various actors influence entrepreneurial performance. The utilization of network potentials for opportunity seeking, resource acquisition and obtaining legitimacy is crucial to cope with liabilities of newness and smallness. We argue that advisory boards are a voluntary instrument with legal flexibility to institutionalize and professionalize networking. In a qualitative assessment with 17 expert interviews in high-tech ventures, we found advisory boards are often influenced by investors, who try to set up a ‘control’ role. But most respondents also mentioned networking, as part of a ‘service role’, as important function. We confirm that advisory boards are used for networking to establish ties, which provide additional information and knowledge, support resource acquisition and increase legitimacy.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 386: Entrepreneurial Corporate Governance
Sun: 09:30 – 10:45
Session 387: Social Capital in Emerging Markets: Local, Glocal or Global?
Sun: 11:15 – 12:30
Session 462: Crowdfunding: State of the Art and Directions for Future Research
Sun: 15:45 – 17:00
Session 235: Cognitive and Behaviorial Perspectives of Entrepreneurial Decision Making
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 607: Entrepreneurship and Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 227: Entrepreneurial Orientation, capabilities and firm performance
Session 445: Adaptation issues for Entrepreneurial Firms
Mon: 11:00 – 12:15
Session 232: Theory Building in the Field of Entrepreneurship
Session 440: Entrepreneurial Strategies in Emerging and International markets
Mon: 14:45 – 16:00
Session 231: Entrepreneurial Leadership: What it Takes to be a Successful Enterprise?
Session 457: Ownership and Funding Structures: Performance Implications for the entrepreneurial firms
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 229: Who Founds and how the Founding Team Impacts the Entrepreneurial Firm?
Tue: 08:00 – 09:15
Session 224: Funding an Entrepreneurial Venture: What Works and What Does Not?
Session 236: Universities, Academics and Incubators: The Role of Academic Institutions in Shaping Entrepreneurial Firm and Outcomes
Tue: 11:00 – 12:15
Session 230: TMTs as Firm Resources
Session 309: New Conversations on Business Models
Tue: 15:30 – 16:45
Session 225: Entrepreneurial Networks: Formation and Implications
Session 228: Dynamic Capabilities and Performance Implications for New Firms
Tue: 17:15 – 18:30
Session 234: Institutional, Industry and Firm Specific Impacts on Nascent Firms
Session 441: Funding Entrepreneurial Ventures: Sources and Successes

Strategic Management Society