How social and human capital influence opportunity recognition and resource mobilization in India's handloom industry

Entrepreneurial Team: How Human and Social Capital Influence Entrepreneurial Opportunity Identification and Mobilization of External Resources

“…In the same vein, Ucbasaran et al (2009) have confirmed, based on a sample of 630 entrepreneurs, that experienced entrepreneurs identified and exploited more opportunities than novice entrepreneurs. However, the study of (Bhagavatula et al, 2010) confirmed that managerial experiences negatively affected the identification of entrepreneurial opportunities, which proves our result for prior managerial experiences. Davidsson and Honig (2003) explained this result by the fact that managerial activities may foster routines that do not facilitate the opportunity recognition and the allocation procedures that are not adapted to the successful entrepreneurial exploitation.…”

“…In addition, experience and education of the entrepreneur represent quality indices for resource holders (Hellmann & Puri, 2002). According to Bhagavatula, Elfring, Tilburg, & Van de Bunt, (2010) the human capital, represented by experiences and professional skills, has a direct impact on access to external financial resources. They confirmed, on a survey of 107 entrepreneurs, that those who have higher experience levels can mobilize more external resources that are useful for exploiting the opportunities identified.…”

“…The aim of our empirical investigation is to study the relationship of human and social capital of entrepreneurial teams with identifying entrepreneurial opportunities (Burt, 2004;Davidsson & Honig, 2003;Shane, 2003) and, secondly to study the relationship between these capitals and mobilizing external resources (Bhagavatula et al, 2010;Hulsink & Elfring, 2003;Jenssen & Greve, 2002). To verify our research models, we used a questionnaire to collect data related to human capital and social capital of entrepreneurs, the number of entrepreneurial opportunities identified and the ease of mobilizing external resources.…”

A dynamic human capital perspective on corporate opportunity identification

“…More recently, studies have found human capital to be positively associated with entrepreneurial opportunity identification and / or pursuit at the level of the individual entrepreneur (Shane, 2000;Davidsson and Honig, 2003;Dimov and Shepherd, 2005;Shepherd and DeTienne, 2005;Ucbasaran et al, 2008Ucbasaran et al, , 2009Bhagavatula et al, 2010). What is less clear from this evidence, however, is how human capital can assist opportunity identification within firms.…”

“…However, while firms may have access to valuable human capital, either through poor design or mismanagement, human resources might not be deployed in a way that achieves adequate strategic impact (Wright et al, 2001;Kaifeng et al, 2012). Because opportunity identification is strongly related to the creation, exchange and combination of knowledge (Nahapiet and Ghoshal, 1996;Zahra, Nielsen and Bogner, 1999), the management of knowledge and human capital becomes important (Kanter, 1985;Hayton, 2005;Bhagavatula et al, 2010;Unger et al, 2011). All things being equal, a firm in possession of superior human capital should identify more opportunities than a firm with weaker human capital.…”