How social and human capital influence opportunity recognition and resource mobilization in India's handloom industry |
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| Authors: | Suresh Bhagavatula Tom Elfring Aad van Tilburg Gerhard G van de Bunt |
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| Institution: | 1. Center for Entrepreneurship, University of St. Gallen, Dufourstrasse 40a, CH-9000 St. Gallen, Switzerland;2. ESADE Graduate School of Business, Avenida Pedralbes 60-62, 08034 Barcelona, Spain;3. WHU, Otto Beisheim School of Management, Vallendar 56179, Germany;4. Vlerick Business School and Ghent University, Reep 1, 9000 Ghent, Belgium;1. Weatherhead School of Management, Case Western Reserve University, 11119 Bellflower Rd., Cleveland, OH 44106, United States;2. Department of Business and Public Administration, University of Cyprus, 1678 Nicosia, Cyprus;3. Cass Business School, City University London, 106 Bunhill Row, EC1Y 8TZ, UK |
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| Abstract: | Small-scale firms in rural areas play an extremely important role in the development of any country, and especially in developing countries. To understand entrepreneurs who operate in a low-technology industry, we rely on the network perspective on entrepreneurship. In this paper, we investigate how the social and human capital of entrepreneurs (in this case master weavers in the handloom industry) influence their ability to recognize opportunities and mobilize resources. In addition to examining the direct effects, we also explore the possibilities of social capital mediating between human capital, on the one hand, and opportunity recognition and resource mobilization on the other. This paper adds to existing literature in two ways: firstly, we expand the social capital paradigm by including different cultural settings and links to existing studies regarding small enterprises. Secondly, we provide additional evidence to the ongoing debate as to what constitutes a ‘good network’. |
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