Entrepreneurs' human and social capital: direct and reinforcing benefits for export

2015

Soc. Netw. Anal. Min.

Self Cite

Research on how start-up firms utilize networks has focused on direct effects of either the personal network around the entrepreneur or the formal collaboration network around the firm. Combining those approaches, we model how a firm's collaboration network is embedded in the personal network around the entrepreneur. With data from the Global Entrepreneurship Monitor on 8918 start-up firms in 40 countries surveyed during 2012-2013, we examine (1) how entrepreneurs' networking in private and public spheres is impacting firms' collaborative networking, (2) how both the personal network and the firm network are impacting performance in forms of innovation and exporting, and (3) how embeddedness of the firm network in the private and public sphere networks around the entrepreneur is affecting innovation and export. The analyses show that the firm network as well as innovation and export are enhanced by the networking in the public sphere, but reduced by networking in the private sphere. Moreover, the benefits of firm network for innovation and export are strengthened by networking in the public sphere but weakened by networking in the private sphere. Finally, we find that innovation is a driver for export, and that this benefit is enhanced by networking in the public sphere, but decreases with networking in the private sphere. These findings refine our knowledge of the functioning of firms' networking for innovation, especially the positive effects of networking in the public sphere and negative effects of networking in the private sphere.

Section: Discussionsupporting

confidence: 91%

Section: Networking and Exportmentioning

confidence: 95%

Start-up firms’ networks for innovation and export: facilitated and constrained by entrepreneurs’ networking in private and public spheres

Jensen

2015

Soc. Netw. Anal. Min.

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“…This is similar to other recent studies of macro-to-micro effects on entrepreneurial behaviour (Ashourizadeh et al, 2014a(Ashourizadeh et al, , 2014b(Ashourizadeh et al, , 2014cSchøtt, 2013, forthcoming 2014;Jensen and Schøtt, 2014;Levie and Autio, 2008;Rezaei et al, forthcoming;Schøtt, 2014;Schøtt and Cheraghi, forthcoming;Schøtt and Sedaghat, 2014).…”

Section: Introduction: Embeddedness Of Innovationsupporting

confidence: 90%

Innovation embedded in entrepreneurs' networks in private and public spheres: a global study focusing on China and Denmark

Cheraghi

Rezaei

et al. 2014

IJESB

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Global studies have found tendencies: traditional culture promotes entrepreneurs' networking in the private sphere, impeding innovation, whereas secular-rational culture facilitates networking in the public sphere, benefiting innovation. This embeddedness is here scrutinised in contrasting societies, China and Denmark. Global Entrepreneurship Monitor has surveyed entrepreneurs in China, Denmark and elsewhere. Analyses reconfirm the global tendencies and show that, China in contrast to Denmark, public sphere networking is sparser, but private sphere networking is denser. Innovation is negatively affected by private sphere networking and positively affected by public sphere networking, but innovation is less promoted by public sphere networking in China than in Denmark.

“…Entrepreneurs' networking in the public sphere, and especially transnational networking, benefits their exporting, but the benefit depends on culture as a moderating effect (Ashourizadeh and Schøtt, forthcoming). This benefit of social capital for exports is also enhanced by human capital as a moderating effect (Ashourizadeh et al 2014). …”

Section: Prior Researchmentioning

confidence: 99%

Innovation embedded in entrepreneurs’ networks and national educational systems

Sedaghat

2014

Small Bus Econ

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The proposition that entrepreneurs' innovation is embedded in networking is refined. We distinguish between networking in the public sphere and networking in the private sphere, and hypothesize that innovation benefits from public sphere networking but suffers from private sphere networking. These hypotheses are tested with a representative sample of 56,611 entrepreneurs in 61 countries surveyed in the Global Entrepreneurship Monitor. Hierarchical linear modeling shows that, while overall networking benefits innovation, innovation is decreased by private sphere networking and increased by networking in the public sphere, especially in the professions and internationally. A further refinement is to consider entrepreneurs' endeavors as embedded in society with its system of education for entrepreneurship. We hypothesize that the quality of a national system moderates the impacts of networks on innovation by adding value to networks. Analyses show that quality of national educational system adds innovation benefits to both public sphere networking and private sphere networking.