Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

Kozan, M. Kamil; Akdeniz, Levent

doi:10.3390/admsci4010035

Cited by 28 publications

(32 citation statements)

References 75 publications

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“…Most importantly, weak ties bridge diverse networks better than strong ties (Kozan & Akdeniz, 2014). Granovetter (1973) states that weak ties make available information that may not be readily provided by strong ties and this is regarded as the "strength of weak ties."…”

Section: Social Networking and Social Networkmentioning

confidence: 99%

Social Networking and the Family Business Performance: A Conceptual Consideration

Agbim¹

2019

JEMI

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Researchers and practi ti oners are divided on the preferred measures of business performance, largely due to the quality of available fi nancial data and the measurability of the non-fi nancial indicators. However, owing to the embeddedness of social networking in families and in the business world, this study reviews the contributi on of social networking to the fi nancial and non-fi nancial performance of family businesses. The study is based on a review of 55 peer-reviewed published journal arti cles. Consequently, the most frequently used social networking platf orms, the measures of fi nancial performance, the measures and proxies of non-fi nancial performance and the diff erences between fi nancial and non-fi nancial performance were identi fi ed. The study proposes the use of both fi nancial and nonfi nancial measures in assessing the performance of family businesses due to their complementary roles.

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Section: Social Networking and Social Networkmentioning

confidence: 99%

Social Networking and the Family Business Performance: A Conceptual Consideration

Agbim¹

2019

JEMI

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“…Since the absence of a tie gives rise to structural holes (Burt, 1992(Burt, , 2000 social network can be made effective by blending strong and weak ties (Elfring & Hulsink, 2003). Most importantly, weak ties bridge diverse networks better than strong ties (Kozan & Akdeniz, 2014). Weak ties complement strong ties by making available information that are not provided by strong ties (Granovetter, 1973).…”

Section: Literature Review Social Networkmentioning

confidence: 99%

“…Strong and weak ties complement each other in different roles, for different purpose or in different populations. Hence, weak ties are used for recruitment, while strong ties promote mutual trust (Kozan & Akdeniz, 2014). Since the family system and the business system are respectively driven by emotional ties and rationality, the family as a social system is embedded in the family's social network (Mesch, 2006;Warnar, 2012).…”

Section: Literature Review Social Networkmentioning

confidence: 99%

The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

Agbim¹,

Igwe

2019

IJIKM

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Aim/Purpose: This study seeks to investigate if participation in business association’s programs through the traditional and new media platforms influences family businesses in South Eastern Nigeria to diversify into similar or different businesses. Background: Before the advances in information and communication technology, businesses were carried on via the traditional media. The application of these advances has changed the way business communications and transactions are conducted globally in both family and non-family businesses. Businesses are adapting to today’s turbulent environment by opening similar or different businesses in the same or different locations that are hinged on the traditional and new media platforms. Nigerians are largely involved in social network through the traditional (face-to-face contact) and new media (e.g., Facebook, WhatsApp, Twitter, YouTube and Instagram). Moreover, in spite of the commonplaceness of family businesses in Nigeria, these businesses still experience weak diversiﬁcation, bankruptcy and loss of socio-emotional wealth. Consequent upon the foregoing, this paper specifically investigates if involvement in social network via the traditional media (i.e., participation in business association’s meetings, workshops, seminars) and the new media (i.e., participation in the business association’s interactive sessions on trending business issues through the association’s online social platform like WhatsApp, Twitter), influence family businesses in South Eastern Nigeria to diversify into similar or different businesses. Methodology: The study adopted a qualitative methodology. The qualitative data were generated via interview involving 30 purposively selected businesses from South Eastern Nigeria. This comprises 15 family businesses each that have respectively adopted related and unrelated diversification strategies. Two respondents (i.e., the business owner and a top level manager) each were drawn from the selected businesses. In all, 60 respondents were interviewed. Since the unit of analysis is the family business, the interview transcriptions from all the respondents were subjected to thematic content analysis on the basis of the family businesses. Contribution: Active involvement and participation in all the meetings, discussions, workshops and seminars of the social network via the traditional and new media platforms facilitates the adoption of related or unrelated diversification in family businesses. Moreover, the adoption of similar social network platforms like WhatsApp and Twitter in all the relationships among and between employees and managers, and the transactions of the businesses is one of the key factors for achieving successful related or unrelated diversification in family businesses. Findings: In spite of the risky nature of the business environment, the adoption of related diversification strategies is significantly influenced by resources such as business consultancy services garnered through the traditional and new media platforms of the social network. Also, family businesses that are actively involved in a social network where the actors interact through the traditional and new media are influenced by the resources acquired to consider adopting unrelated diversification. These resources include: better understanding of the nature of business challenges, environments and experiences; and different lines of businesses. Thus, the traditional and new media platforms are complementary in their roles. Recommendations for Practitioners: Family business owner-managers could use the findings to develop related or unrelated strategies for diversifying into existing or new markets. This can be through the localization of manufacturing plant, improvement of product packaging, sitting of sales outlet closer to the consumers, introduction of lower prices for products/services, introduction of new and better ways of service delivery, or development of more compelling promotion strategies. Recommendation for Researchers: As a veritable guide, this study could guide future researchers in the formulation of their objectives, selection of instrument for data collection and respondents, and adoption of method of data analysis. Impact on Society: Successful diversification suggests the establishment of new or more businesses. Consequently, these new or more family businesses are expected to translate to more employment opportunities and by extension reduction in unemployment and poverty rates in the society. Future Research: Further studies should be carried out to enhance the development of family businesses, contribute to the existing literature and ensure the generalization of the findings.

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“…Women who cannot directly approach men are most likely prevented from using the resources that men control. Additionally, women who live in social enclaves are less likely to reach the resources that are being held by people outside the enclave, and thus again are deprived of the resources that could help them run a business (Kozan and Akdeniz, 2014).…”

Section: Social Network In Religious Groupsmentioning

confidence: 99%

The surprising lack of connection between social networks and the enterprise success of ultra-religious female micro-entrepreneurs

Monnickendam-Givon

Schwartz

Gidron

2018

JEC

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Purpose The utilization of social networks is known to have an impact on micro-enterprise success. This study aims to examine the contribution of social networks in acquiring resources and their role in the enterprise’s success. Design/methodology/approach A business’s success is influenced by its network structure and the network’s resources. The authors examine whether unique religious-cultural characteristics affect the social networks contribution to a business’s success. This model examines the network utilization of women entrepreneurs who own micro-enterprises in ultra-religious groups. The sample consists of 123 surveys completed by Jewish ultra-Orthodox women entrepreneurs in Israel. Data collection was conducted between February and June 2013. The authors used a snowball sampling approach where interviewees were asked to refer us to other entrepreneurs. In the hour-long interview, a questionnaire was used with open and closed questions. Findings Findings indicate that strong personal ties provide a micro-enterprise with social legitimacy, emotional support and assistance in the management and operation of daily activities. However, contrary to the existing literature, network utilization did not contribute to enterprise success. That is, in religious communities in particular, social networks enable the existence of businesses, but do not contribute to their success. Practical implications The practical implications of this paper are the mapping of the social network resources used by the business owner, such as financial consultations or professional assistance, as well as distinguishing between strong and weak ties, which reflect the intensity of the contact for better use of the social network by the entrepreneurs. Originality/value This study examined social networks’ contribution to the acquisition of resources, as well as the part they play in the success of ultra-orthodox women micro-entrepreneurs and perhaps other religious and minorities groups.

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Role of Strong versus Weak Networks in Small Business Growth in an Emerging Economy

Cited by 28 publications

References 75 publications

Social Networking and the Family Business Performance: A Conceptual Consideration

Social Networking and the Family Business Performance: A Conceptual Consideration

The Role of Social Network in Family Business Diversification: Evidence from South Eastern Nigeria

The surprising lack of connection between social networks and the enterprise success of ultra-religious female micro-entrepreneurs

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