Networks and entrepreneurial learning: coping with difficulties

Abstract

Purpose-Many scholars analyse networks and learning to understand how individuals successfully create and manage new ventures. Based on the assumption that entrepreneurs learn from networks, this study examines which types of difficulties encourage entrepreneurs to use networks to facilitate learning, whether entrepreneurs change networks to deal with such difficulties, and which network characteristics facilitate learning. Design/methodology/approach-Networks are considered a potential source of learning, namely, the cognitive process of acquiring and structuring knowledge, creating meaning from experience and generating new solutions from existing knowledge. Through networks, entrepreneur share information and discuss opportunities and problems. Using an innovative approach combining storytelling and network mapping, this study analyses how entrepreneurs use networks in learning. The data collected from six entrepreneurs working in knowledge-intensive sectors enables examining the learning process ensuing from the interactions between entrepreneurs and their contacts. Findings-The findings show that entrepreneurs construct different types of networks in response to their difficulties, not in relation to products or technologies, but to learn to overcome self-crises, external threats, management and organisational issues. The findings reveal that entrepreneurs develop networks dominated by strong ties for exploitative learning and networks dominated by weak ties for explorative learning. Originality/value-This study contributes to literature on networks and entrepreneurial learning. More specifically, the study provides evidence of learning in the context of networks, which is a relatively overlooked area in entrepreneurship literature, identifying the role of difficulties in determining the type of learning through networks and the related mechanisms.

Entrepreneurial learning in practice: The impact of knowledge transfer

“…All the principals acknowledged the potential role of significant others as a means of compensating for a lack of competency in specific areas of business practice corroborating arguments by Timmons and Spinelli (2009), Rae (2007), Taylor and Thorpe (2004), Leitch et al (2013) and Soetanto (2017). This study did not however suggest that networks were more or less important at different stages of business development/growth, as concluded in previous studies, but found their overall impact on Entrepreneurial Practitioners to be significant.…”

“…In addition, what emerges is the concept that the lone entrepreneur has been challenged, and in its place the idea of effective entrepreneurial activity being highly dependent on relationship networks both inside and outside of the businesses (Devins et al, 2002;Harding, 2004;Taylor and Thorpe, 2004;Rae, 2007). The role of the founder's network of contacts, including family and friends, as well as business contacts is crucial; core dimensions of any entrepreneurial practitioner's human capital, (Leitch et al, 2013;Soetanto, 2017). Baggen et al (2016) identify the role of 'significant peers' in providing support to entrepreneur's learning, particularly in the early stages of startup and business development, people identified as knowledgeable and experienced in business practice with a willingness to share and guide the Entrepreneurial Practitioner as he/she experiences the many challenges of starting, and subsequently developing, a business venture.…”

“…'Entrepreneurs learn by responding to challenges while also becoming aware of their limitations' suggests Soetanto (2017: p. 5). Critical events are identified as being of importance in supporting learning and entrepreneurial business venturers are likely to seek out such network ties often when experiencing difficulties, (Soetanto, 2017;Baggen et al, 2016). Another area of interest is the role of university-SME engagement on practitioner learning.…”

Understanding the emergence of a social enterprise by highly skilled migrants

“…chambers of commerce, Church, Rotary or Lions Club) (Davidsson and Honig, 2003). Weak ties are crucial because they represent bridges to access networks or groups of people (Soetanto, 2017). Yet, in comparison with strong ties the amount of information, support or empathy to be procured through weak ties is uncertain.…”

Analisis Program Entrepreneur Enabler Dengan Metode Participatory Action Learning System

“…Sharing bisnis bertujuan untuk memperluas jaringan bisnis. Soetanto, D. (2017) menemukan entrepreneur mampu mengembangkan jaringan, sebagian besar memiliki ikatan kuat untuk pembelajaran eksploitatif. Gambar ini merupakan hasil karya peserta.…”