The uninvited brand

Brands rushed into social media, viewing social networks, video sharing, online communities, and microblogging sites as the panacea to diminishing returns for traditional brand building routes. But as more branding activity moves to the Web, marketers are confronted with the stark realization that social media was made for people, not for brands. In this article, we explore the emergent cultural landscape of open source branding, and identify marketing strategies directed at the hunt for consumer engagement on the People's Web. These strategies present a paradox, for to gain coveted resonance, the brand must relinquish control. We discuss how Web-based power struggles between marketers and consumer brand authors challenge accepted branding truths and paradigms: where short-term brands can trump long-term icons; where marketing looks more like public relations; where brand building gives way to brand protection; and brand value is driven by risk, not returns.     

Doing more with less,systematically? Bricolage and ingenieuring in successful social ventures

This study investigates whether and how bricolage- and ingenieuring-type of approaches are used in successful social ventures in the learning/education sector across three different contexts (Brazil, South Africa and the US). We employ a partially grounded theory approach to examine the profiles of Ashoka fellows and find that despite the vast differences in their local environments, successful social entrepreneurs engage in similar bricolage processes in three domains of value creation: they tend to refuse limitations imposed by the environment, utilize resources in new and innovative ways, and engage a wide range of stakeholders as partners. Additionally, successful social entrepreneurs avoid just “making do”; instead, they rely on ingenieur-type of approach in their operational process to create and establish replicable systems to fulfil their social vision. We discuss the remarkable consistency in the approaches utilized by successful social entrepreneurs across the three countries from the perspective of theory and practice.     

Human capital and entrepreneurial success: A meta-analytical review

The study meta-analytically integrates results from three decades of human capital research in entrepreneurship. Based on 70 independent samples (N = 24,733), we found a significant but small relationship between human capital and success (r_c = .098). We examined theoretically derived moderators of this relationship referring to conceptualizations of human capital, to context, and to measurement of success. The relationship was higher for outcomes of human capital investments (knowledge/skills) than for human capital investments (education/experience), for human capital with high task-relatedness compared to low task-relatedness, for young businesses compared to old businesses, and for the dependent variable size compared to growth or profitability. Findings are relevant for practitioners (lenders, policy makers, educators) and for future research. Our findings show that future research should pursue moderator approaches to study the effects of human capital on success. Further, human capital is most important if it is task-related and if it consists of outcomes of human capital investments rather than human capital investments; this suggests that research should overcome a static view of human capital and should rather investigate the processes of learning, knowledge acquisition, and the transfer of knowledge to entrepreneurial tasks.     

Exploring the antecedents of social liabilities in CVC triads—A dynamic social network perspective

This study addresses the emergence of social liabilities by taking a social network perspective on intra- and interorganizational network configurations using the hitherto unexplored example of the corporate venture capital (CVC) triad (CVC unit, corporate business unit, and portfolio company). We investigate social capital and social liability resulting from network formation and transformation and assess their impact on interorganizational knowledge transfer and creation. Examining 12 CVC triads in Germany, we identify new antecedents of social liability, show that social capital can initially facilitate knowledge transfer and creation, and that structural and personal lock-ins may eventually turn that capital into a liability. We make key theoretical contributions to the social network and CVC literature.     

Performance Implications of a Retail Purchasing Network: The Role of Social Capital

This study employs social capital theory to examine how a retail buyer's network of industry peers influences retail performance. We propose that performance is enhanced by three network resources – access, referral, and influence – that result from two structural facets of a retail buyer's network: contact diversity and contact position. We test the model by collecting sociometric data that measures interpersonal ties among 84 retail buyers operating in the same geographic territory in the U.S. golf industry. The results offer evidence that network resources lead to higher levels of performance, even when accounting for differences in human capital and organizational resources. The paper concludes with a discussion of managerial and theoretical implications.     

Shaping and re-shaping social capital in buyer-supplier relationships

Social capital plays an important role in explaining how value is created from firms' network relationships, but little is understood about how social capital is shaped over time and how it is re-shaped when firms consolidate their network ties. In response, this study explores the evolution of social capital in buyer-supplier relationships through a case study of a company undertaking radical product innovation, and examines the corresponding changes in the firm's network of buyer-supplier relationships. The analysis shows that social capital is built in a decidedly non-linear and non-uniform manner. The study also reveals considerable interaction among the dimensions of social capital throughout the evolution of the firm's network, and emphasizes the importance of the cognitive dimension—a feature receiving little attention thus far. The evidence shows, too, that efforts to strengthen social capital need to increase when network ties are sacrificed to prevent unintended consequences for firms' longer-term value creation.     

SUPPLY CHAIN CAPITAL: THE IMPACT OF STRUCTURAL AND RELATIONAL LINKAGES ON FIRM EXECUTION AND INNOVATION

Firms invest millions of dollars annually in developing their supply chains, with the broad goal of increasing their own performance. However, despite the significant resources deployed for supply chain development, the extent to which initiating, maintaining, and managing supply chain relationships contributes to firm success remains unclear. The current article provides conceptual development supporting the valuation of firm‐to‐firm supply chain connections from the perspective of the focal firm. Based on the social network and economics literatures, the article introduces the concept of supply chain capital, which comprises the value of both the structural configuration and relationship content of the firm's supply chain network. Following theoretical development, a non‐exhaustive set of propositions are constructed illustrating multiple ways that supply chain capital can be accrued and exploited for firm‐level benefit. Managerial recommendations for investment in supply chain capital are included, as are future directions for research in the area of supply chain networks.     

Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities

Although entrepreneurship scholars highlight bootstrapping as a key resource acquisition approach to respond to the inherent resource constraints that nascent ventures face, little is known about what causes nascent ventures to engage in bootstrapping. Theory highlights the environment as an important determinant of bootstrapping activity. Analyzing bootstrapping behavior of 298 nascent ventures, we find that beyond perceived environmental factors, individual characteristics of the nascent entrepreneurs and factors relating to the embeddedness of the entrepreneurs in the environment determine their venture's bootstrapping behavior. In a more fine-grained analysis we gain insights into how these antecedents shape the use of particular bootstrapping strategies. Findings contribute to our understanding of factors driving resource management approaches in nascent ventures.     

The significance of human capital and social capital: professional–client relationships in the Asia Pacific

Professionals working in professional service firms rely on their human capital and social capital to deliver value in their service provision and delivery to clients. However, research to-date is limited regarding investigations into the relationship between human capital and social capital at the level of professional–client relationships, particularly in the context of the Asia Pacific where changes in business environment, professional jurisdiction and ways of working have been commonplace for many firms operating in this region. In this study of Australian corporate law firms and client organizations, our results reveal significant evidence of relationships between social capital and human capital in the form of knowledge acquisition, where social capital facilitates professionals’ capacity to acquire knowledge from clients and increases the overall amount of knowledge acquired. More research on social capital and knowledge acquisition has the potential to advance our understanding of the influence of professional–client relationships on human capital development in the Asia Pacific.     

Learning asymmetries and the discovery of entrepreneurial opportunities

Discovering entrepreneurial opportunities requires that individuals not only possess some form of prior knowledge, but that they also have the cognitive abilities that allow them to value and exploit that knowledge. This article builds upon and extends this line of inquiry by examining the relationship between opportunity identification and learning. Based upon an experimental task and other data collected from 380 technology professionals, the article defines a relationship between how individuals acquire and transform information and experience (i.e., learning) in order to identify opportunities. After analyzing the empirical data, the article develops the concept of learning asymmetries and explains how the manner in which people learn may affect their ability to identify entrepreneurial opportunities.     

The sensitivity of compensation to social capital: Family CEOs vs. nonfamily CEOs in the family business groups

This study examines the role of CEO social capital, defined as external directorship ties held by the CEO, in determining family vs. nonfamily CEOs' compensation in a network-based business society and governance system. Using a sample of pooled data of family firms listed on the Taiwan Stock Exchange (TSE) from 2000 to 2002, the empirical results show that CEO social capital is an important determinant in setting nonfamily CEOs' pay level, consistent with the expectation of the contractual governance model. By contrast, as expected by relational governance model, family CEOs' social capital is not incentive-relevant. This study extends the literature on CEO compensation by documenting that in a market where guanxi and connections are considered valuable business tools, corporations will be willing to compensate professional CEOs for the social capital that they bring to the firm.     

Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators

Despite a surge of studies examining the role of social capital in the entrepreneurial process, no quantitative assessments exist of the empirical evidence to date. To resolve seemingly conflicting results, we conducted a meta-analysis of the link between entrepreneurs' personal networks and small firm performance and identify new moderators affecting this relationship. Analyses of 61 independent samples indicated that the social capital–performance link was positive and significant (r_c = .211). Effect sizes of weak ties were smaller than those of structural holes, while network diversity had the largest positive effect on performance. Results also showed that the social capital–performance link depends on the age of small firms, the industry and institutional contexts in which they operate, and on the specific network or performance measures used. Based on these findings, we develop recommendations for future research on the contingent value of social capital for small firms.     

How does entrepreneurs' social capital hinder new business development? A relational embeddedness perspective

While most studies argue that, relational embeddedness, one facet of social capital, facilitates the obtaining process of scarce resources, our study cautions that it may exert negative impacts. This study examines the underlying process about how shared cognition influences new business development. Results from a survey on entrepreneur social network in China demonstrate that strong ties bring decision-making constraints for entrepreneurs to bear, while trust helps to lessen such restriction. Additionally, shared cognition should not become a preferred standard for entrepreneurs in choosing their network members, because simply relying on the intermediate role of tie strength engenders dark sides. Implications for research as well as for practice are discussed.     

Entrepreneurial network development: Trusting in the process

An entrepreneur's network can provide a significant source of social capital, which, in turn, may increase a new venture's likelihood of success. Entrepreneurship research has frequently examined how such networks develop, and reviewing extant studies suggests that trust plays a significant role in this process. Despite its recognized importance, limited research exists examining how trust evolves during and interacts with the entrepreneur's venture network development. Accordingly, we propose that an entrepreneur's reliance on exchange relationships based on affective and cognitive trust will vary as the entrepreneur moves through the network development process. We conclude by discussing both the model's implications and future research avenues.