Bridging the disconnect: how network creation facilitates female Bangladeshi entrepreneurship

Networking has been suggested as a tool to address the challenges of social entrepreneurs in severely resource constrained environments. Especially in countries where women do not usually take part in economic activities, like in Bangladesh, stimulating networking and entrepreneurship among women could have a high impact. We use longitudinal data gathered over two years, to study how entrepreneurial networks are developed and used by female entrepreneurs in Bangladesh, and how a third party can stimulate network development. We followed 26 women from the start of their entrepreneurial development. Adopting a social capital perspective on network formation and development, we identified four essential strategies in building entrepreneurial networks: modifying and building on existing bonding networks, transferring linking ties, teaching how to build bridging networks, and the creation of a network of entrepreneurial peers. We found that a third party can successfully stimulate network development for the poorest in Bangladesh. We also found that the patterns of network development in this severely resource-constraint environment are remarkably different from those found in corporate studies. Our findings can contribute to developing new pathways to stimulate entrepreneurship in developing countries.     

Entrepreneurs’ networks and the success of start-ups

The network success hypothesis assumes a positive relation between the networking activities of founders and their start-up’s success. The rationale behind this hypothesis is the theory of socially embedded ties that allow entrepreneurs to get resources cheaper than they could be obtained on markets and to secure resources that would not be available on markets at all, e.g. reputation, customer contacts, etc.

This paper clarifies how entrepreneurial network activities can be measured and which indicators exist to quantify start-up success. It then reviews empirical studies on the network success hypothesis. The studies have rarely come up with significant results. This surprising evidence can be explained by large differences in the way that the dependent and the independent variables were defined and by effects of unobserved variables such as the networking expertise of the founders and the entrepreneurs’ level of existing know-how in the areas of co-operation and networking (‘absorptive capacity’). The major shortcomings of existing network studies are found to be the neglect of different starting conditions, the focus on individual founders’ networks instead of multiple networks in start-ups with an entrepreneurial team, and the assumption of a linear causal relation between networking and start-up success. Accordingly, the paper develops a new, extended model for the relation between entrepreneurial networks and start-up success. Finally, we make some suggestions for the further development of entrepreneurial network theory.     

Network dynamics and new ventures in China: A longitudinal study

This study examines the effects of networking skills of entrepreneurs on network dynamics and venture legitimacy. The article is based on the longitudinal survey data of 94 Internet entrepreneurs in Beijing, China. The findings suggest that networking skills of entrepreneurs have positive effects on the structural changes of entrepreneurial networks over time. Further, improvements in networking skills of entrepreneurs are conducive to greater venture legitimacy measured as the number of institutional investors in the new venture. The research and practical implications are discussed.     

Networking and culture in entrepreneurship

Case studies on three diverse cultural groups are used to investigate how culture norms and practices moderate the way entrepreneurs utilize social networking. Moving away from a universalist mono-dimensional position, prior research calls for studies on how culture moderates entrepreneurial networking. Understandably, the concept of a national culture inevitably refers to the mainstream culture which fails to address the sub-culture and minority culture. This paper explores entrepreneurial networking across three cultures (one mainstream culture and two minority) allowing the researcher an insight into how culture moderates entrepreneurial networking. The empirical results reveal variform universality of entrepreneurial networking in two ways: (1) seven drivers moderate how entrepreneurial networking is practiced across cultures, and (2) being embedded in a mainstream culture rather than a minority culture moderates how entrepreneurial networking is practiced.     

Paradigms and entrepreneurial networks–some methodological challenges

The use of network approaches to gain an understanding of business behaviour in general, and entrepreneurial action in particular, has increased. Research into entrepreneurial networking, however, varies considerably depending upon paradigmatic assumptions. In deterministic contexts networks mainly represent restrictions while in voluntaristic settings the network is the very instrument by which new ventures are realized. A subjectivist approach thus seems to be most able to exploit the potentials of the network metaphor in entrepreneurship research since venturing means organizing through personal networking. Yet both quantitative and qualitative tools may be adopted when mapping and interpreting the characteristics of entrepreneurial networks.     

Gender in Academic Networking: The Role of Gatekeepers in Professorial Recruitment

The aim of this study is to build a theoretical framework to understand how gendered networking practices produce or counter inequalities in organizations. We introduce a practice approach combined with a feminist perspective in organization network studies. The notions of gender and networking as social practices allow better insights into what people say and do in networks, and the ways that networking produces or counters gender inequalities. We draw on empirical material about professorial appointments in Dutch academia and analyse the accounts of gatekeepers illuminating their networking practices. The accounts show which networking practices gatekeepers routinely use in recruitment and how these networking practices are intertwined with gender practices. We use the notion of mobilizing masculinities to understand the self‐evident identification of men gatekeepers with men in their networks, and to understand how both men and women gatekeepers prefer the male candidates that resemble the proven masculine success model. Furthermore, this study provides the first empirical insights in mobilizing femininities in which women search for and support women candidates. We show how the gender practice of mobilizing femininities is a more precarious and marked practice than mobilizing masculinities. Mobilizing femininities in networking is intended to counter gender inequalities, but is only partially successful. Through constructions of ‘who you can trust’ or ‘who is a risk’, gatekeepers exercise the power of inclusion and exclusion and contribute to the persistence of structural gender inequalities.     

The importance of being networked: The costs of informal networking in the Western Balkans region

This is the first study to measure the size and costs of informal networking, quizzing the premise that informal networks benefit individuals, households and entrepreneurs. On the basis of survey data from the Western Balkans (WB) and empirical analysis, we establish that informal networking, or use of personal contacts for getting things done, has a regular occurrence in the region and its economic cost is substantial. In the structure of networking costs, the costs of invested time dominate over money. Respondents who perceive networking as important and beneficial tend to invest more time and money to maintain their networks. Higher costs are associated with larger networks, which are predominantly built on strong ties. The informal networking costs are also higher for those with better education and income, and in particular for entrepreneurs. Consequently, individuals bear the high costs of informal networking not only for social and culturally determined reasons, but to a large extent for instrumental purposes. Our data suggest that both sociability and instrumentality drive informal networking, which makes it an outcome of both informal constraints (taboos, customs, traditions, and codes of conduct) and inefficient formal rules (constitutions, laws, property rights).     

Networks in family business: a multi-rational approach

Current research on networks in family businesses has approached the topic from a mono-rational perspective where the family, business and social networks are each considered in relative isolation. This paper argues that multi-rational approaches, which accept that the three groups of networks interact and overlap, offer a useful alternative perspective. In proposing the case for multiple rationalities as a framework within which family business networking can be viewed – and in putting forward an initial model – the paper allows the interaction of the different networks within the family business to be more fully acknowledged. Evidence from the literature is presented as a basis for further exploration using empirical approaches and it is emphasised that further and empirical approaches are required.     

How community context affects entrepreneurial process: A diagnostic framework

This study reports a multi-faceted search to discover and articulate, in the form of a manageable framework, a diagnostic system for assessing the influence that community factors will have upon the conduct and outcome of any proposed entrepreneurial process. A methodological approach based on investigation of a rich empirical database supported by a wide examination of extant theory in several literatures, resulted in the production of a diagnostic system whose diagrammatic depiction employs a ‘bridge’ analogy. It depicts the culmination of the diagnostic procedure as the ability of different travellers (entrepreneurial actors and community members affected by their actions) to proceed via multiple pathways from an origin to a destination. The origin is a deep understanding of the community as an intermediate environment containing factors both conducive and hostile to any proposed entrepreneurial process. This deep understanding is founded upon intense local examination of the nature and interrelationship of three generic institutional components of any community: physical resources, human resources and property rights, and three generic human factors: human resources, social networks and the ability to span boundaries. The destination thus becomes a contextualised understanding and re-articulation of any proposed entrepreneurial process under consideration. Validation of the efficacy of the framework is being undertaken internationally as a key component of seven substantial projects, which simultaneously involve research and practice. Implications for research and practice are discussed.     

Entrepreneurship and mutuality: social capital in processes and practices

Social capital, which offers the broader theoretical construct to which networks and networking relate, is now recognized as an important influence in entrepreneurship. Broadly understood as resources embedded in networks and accessed through social connections, research has mainly focused on measuring structural, relational and cognitive dimensions of the concept. While useful, these measurements tell us little about how social capital, as a relational artefact and connecting mechanism, actually works in practice. As a social phenomenon which exists between individuals and contextualized through social networks and groups, we draw upon established social theory to offer an enhanced practical understanding of social capital – what it does and how it operates. Drawing on the work of Pierre Bourdieu and Robert Putnam, we contribute to understanding entrepreneurship as a socially situated and influenced practice. From this perspective, our unit of analysis is the context within which entrepreneurs are embedded. We explored the situated narratives and practices of a group of 15 entrepreneurs from ‘Inisgrianan’, a small town in the northwest of Ireland. We adopted a qualitative approach, utilizing an interpretive naturalistic philosophy. Findings show how social capital can enable, and how the mutuality of shared interests allows, encourages and engages entrepreneurs in sharing entrepreneurial expertise.     

Linking entrepreneurial and market orientation to the SME’s performance growth: the moderating role of entrepreneurial experience and networks

Entrepreneurial orientation and market orientation (EO and MO, respectively) have received extensive research attention in the past several decades. Although scholars widely agree that both MO and EO are critical to firms’ performances, a better understanding is still needed about how market and entrepreneurial orientation develop over time as well as their relative impact on the growth of the SME’s performance. This study does not consider MO and EO as generic resources that always positively influence firms’ performances; instead, it tries to explore contingent elements, such as social and business networks and accumulated entrepreneurial experience. The hypotheses were tested on 191 small and medium-sized electronic firms located in an Italian geographical cluster during two periods: 2005 and 2016. This study suggests that SMEs, which develop social networks, may enjoy considerable advantages from entrepreneurial and market orientation, improving their performance benefits. Moreover, our results show that previous entrepreneurial experience, when specific, can reinforce the impact of entrepreneurial and market orientation on firms’ performance growth. This analysis makes several important contributions to the management literature on the strategic orientation of firms, the entrepreneurial experience and network development.

     

Swedish BioTech SMEs: The veiled values in online networks

For many years, sociologists have conceptualized and debated the value of ‘social capital’, the resources embedded in an actor's social network. The notions of network organizations and strategic alliances have become important forms of entrepreneurial venture, yet often the value in these networks is veiled by network complexity. These associations of individuals and organizations are typically undocumented, difficult to identify by third parties, and even pass unrecognized by their constituent members. They consist of informal Internet networks that are extremely valuable because of the strategic social capital embedded in them.Drawing on social network theory, this paper outlines a methodology for viewing and valuing informal Internet networks, using small-to-medium sized enterprises in the Swedish biotechnology arena as a backdrop. It demonstrates that networks can be constructed from the links between the web sites of actor firms, and that it is possible to use social network theory to identify the most prominent actors. Then, using structural hole analysis, the entrepreneurial opportunities surrounding these actors can be unveiled.     

The Organizational Life of an Idea: Integrating Social Network,Creativity and Decision‐Making Perspectives*

abstract Existing theories on the influence of social networks on creativity focus on idea generation. Conversely, the new product development literature concentrates more on the selection of ideas and projects. In this paper we bridge this gap by developing a dynamic framework for the role of social networks from idea generation to selection. We apply findings from creativity and behavioural decision‐making literature and present an in‐depth understanding of the sociological processes in the front‐end of the new product development process. Our framework builds on the importance of mutual understanding, sensemaking and consensus formation. The propositions focus on both network structure and content and highlight the need to have strong ties and prior related knowledge, to incorporate decision makers, and to move over time from a large, non‐redundant and heterogeneous to a smaller and more cohesive network structure. We conclude with a discussion on empirical validation of the framework and possible extensions.     

Reconceptualizing entrepreneurial framework conditions

This report is an empirical examination of entrepreneurial framework conditions—the environmental conditions that encourage and support entrepreneurial activity at the national level. In particular, it attempts to validate the framework conditions employed in the Global Entrepreneurship Monitor (GEM), a multi-year, multinational study of entrepreneurial activity widely used in entrepreneurship research. The validity of the GEM entrepreneurial framework conditions is examined using empirical analysis of data drawn from Global Competitiveness Report measures for 53 countries over 4 years. The data suggest an alternative conceptualization of entrepreneurial framework conditions: commercial munificence, technology openness, regulatory openness, and technology influx. These findings have implications for theorists and policy makers interested in antecedents to entrepreneurially based economic growth.     

The dynamics of entrepreneurs’ networks in a transitioning economy: the case of Russia

Despite its theoretical and practical importance, the evolution and development of entrepreneurs’ networks has attracted a little attention of researchers. The emerging research literature on this topic found that the dynamics of entrepreneurial networks were contingent upon venture lifecycle, industry and region, and resource needs of the firm. In addition and contrast to the previous research, this article examines the effects of the initial network structure, and firm performance of previous years on the changes in entrepreneurs' network structure, relations, and resources over 4 years. The empirical data is composed of the face-to-face interviews with 75 Russian entrepreneurs in 1995, and the follow-up interviews with 56 original respondents in 1999. I found that the greater the initial network size, the less the increase in network size, strong and weak ties, and resources over time. Further, the findings indicate that revenue growth of previous years predicts the changes in networks in the reverse manner. Thus, I found that the greater the average revenue growth, the less the increase in network size, weak ties, and resources over time.     

Social capital effects on the discovery and exploitation of entrepreneurial opportunities

Social capital refers to social networks and the norms of reciprocity, cooperation and trust associated with them. It can be studied at different levels of analysis. As previous literature suggests, social capital has aspects at both the individual and collective levels. However, theory development and empirical research have focused on separate, sometimes diverging levels. In an attempt to address this, this research examines the simultaneous influence of individual and regional social capital on the discovery and exploitation of entrepreneurial opportunities using individual-level data from the Global Entrepreneurship Monitor linked with regional-level data on social capital. The results show that individuals from regions with higher social capital are more likely to discover and to exploit entrepreneurial opportunities. Moreover, individuals having networks with other entrepreneurs are also more likely to identify a business opportunity and to become an entrepreneur. Also, we found that social capital at individual level had a greater effect than social capital at regional level in the two stages of the entrepreneurial process.     

Processes and structures of networks: reflections on methodology

While social capital has been applied in a variety of contexts, the nature, role and application of social capital in an entrepreneurial context have not been extensively explored. The nature of social capital presents a conceptual puzzle in that it is said to be both glue, which forms the structure of networks, and at the same time a lubricant that facilitates the operation of networks. Using techniques of participant observation and interviews, this paper attempts to resolve this enigma. It finds that social capital is not a thing, but a process that creates a condition of social capital. The structural and relational aspects are found to be dimensions of this process. Interestingly, the data also demonstrates that there are successful etiquettes of social capital formation. These etiquettes provide the rules and framework for the interactions.     

Special issue on “The role of networks in entrepreneurial performance: new answers to old questions?”

The nature and extent of relationships between entrepreneurial networks and entrepreneurial performance are old questions. Scholars have explored the nature of entrepreneurial networks and have focused on their relationship with, and effects on, performance, which is viewed in this special issue in terms of the strategic development of established businesses and new ventures. However, while much is now known about the origins and effects of social networks there continues to a paucity of research on how social networks are used in various organizations, and when one or more networks are drawn upon for what specific purpose. Each article in this special issue addresses one or more of these questions in a range of industries and environments, namely poor village entrepreneurs who have to work in a highly challenging financial and social environment in Bangladesh, “early internationalizing small firms” in South Africa, high technology “early-stage ventures” in Hong Kong, 3-D technology ventures that operate with an “open” business model, and the “multi-rational” nature of networks in family businesses in and beyond the UK. In all, this collection of papers comprises a body of scholarship with fine-grained studies on how and when specific social networks are drawn on in various forms of organization. The subsequent discussion of these issues extends knowledge of the various ways in which entrepreneurs and entrepreneurial businesses advance their interests by leveraging familiar business and social networks.     

Social Networks and Business Success

A bstract .   The main objective of this paper is to illuminate social and cultural preconditions for networking and success in business in an African context. By in-depth studies of small-scale entrepreneurs in the wood business in Tanzania, we find that people belonging to an Asian subculture probably have a better standing for entering and thriving in business, due to group cohesion, mobility, and level of education. Through high-quality social networks, characterized by a high number and variety of relations, certain groups seem to be in a better position to enact their business environment and raise entrepreneurial resources such as motivation and ideas, information, capital, and trust. To reduce social discontent and inter-ethnic and religious conflicts in this area, we suggest that policy measures be taken to enhance levels of education and access to information for all citizens to create a "level playing field" in economic affairs.     

Determinants of agricultural entrepreneurship: a GEM data based study

The aim of this study is to explain the determinants of entrepreneurship in agriculture industry. What are the drivers of early stage entrepreneurial activity of agri-business entrepreneur and how it is influenced by various cognitive and social capital factors? To answers these questions various driving factors of entrepreneurial activity have been explored from the literature. To achieve the objective, the study uses APS (Adult Population Survey) 2013 data of 69 countries provided by GEM (Global Entrepreneurship Monitor). Total number of respondents 1470, those who are alone or with others, currently trying to start a new business, including any self-employment or selling any goods or services to others in Agriculture Industry, were selected from the data set. To measure the influence of cognitive and social capital factors on early stage entrepreneurial activity logistic regression was employed. The findings show that those who see entrepreneurial opportunities, are confident in their own skills and ability, having personal relationship or social networks with existing entrepreneurs, and have invested in others business as business angels are more likely to become an entrepreneur. Additionally, fear of failure or risk perception does not prevent people to become entrepreneur. Policy implications have been discussed. This is one the first study of its kind and contributes to the existing literature by explaining agricultural entrepreneurship through an integrated approach of entrepreneurial cognition and social networking.