2009
DOI: 10.2139/ssrn.1499632
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How Exactly Do Networking Investments Pay Off? Analyzing the Impact of Nascent Entrepreneurs Networking Investments on Access to Start-Up Resources

Abstract: It is widely recognized that networks provide access to the resources necessary for founding a business. Up until now, however, the relationship between networking investments and the availability of resources has not been analyzed in depth. Using a sample of 416 nascent entrepreneurs, we address this issue, and provide evidence that networking investments lead to diminishing marginal resource returns in terms of financial, informational, emotional and contact support. Our results also show that resource retur… Show more

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Cited by 3 publications
(7 citation statements)
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“…Similarly, when working routines and shared norms of understanding are well established and resource exchange is already very efficient, an additional increase in the amount of time spent will not have a similar significant impact. In summary and in line with the results provided by previous research (Semrau and Werner 2009), we thus expect positive but diminishing returns of increasing investments in relationship quality.…”
Section: Theory and Hypothesessupporting
confidence: 91%
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“…Similarly, when working routines and shared norms of understanding are well established and resource exchange is already very efficient, an additional increase in the amount of time spent will not have a similar significant impact. In summary and in line with the results provided by previous research (Semrau and Werner 2009), we thus expect positive but diminishing returns of increasing investments in relationship quality.…”
Section: Theory and Hypothesessupporting
confidence: 91%
“…First, in line with previous research results, we expect the profits generated by further extending a network to increase at a decreasing rate (Semrau and Werner 2009). Although adding more partners to a small network will most probably enhance the variety of resources available, adding more contacts to a larger network will likely mean adding ties that provide resources that are already provided by existing network contacts.…”
Section: Theory and Hypothesessupporting
confidence: 87%
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