Social Capital and Innovative Performance in Networks: The Journey of Romanian SaaS Entrepreneurs

Abstract

Entrepreneurship is increasingly acknowledged as a critical economic and growth driver. As a result, practitioners’ and scholars’ inquiry into the link between the entrepreneurial social network and its pursuit of innovation have gained momentum in developed economies. However, it remains scarce in the context of emergent economies. Drawing upon social network theory, this qualitative study explores this knowledge gap by examining how Romanian software as a service (SaaS) entrepreneurs enable innovative performance by using social capital in national and international entrepreneurial networks. This qualitative interpretative study relies on the experiences and practices shared by 24 Romanian SaaS entrepreneurs interviewed to expand our understanding of how these entrepreneurs use social capital-driven networks to achieve innovative performance in international markets. Feeling unsupported by a weak institutional entrepreneurial context, Romanian SaaS entrepreneurs build their international entrepreneurial journeys and achieve innovative performance extensively by relying on social capital-driven networks. This paper contributes to the emergent economies stream on entrepreneurship literature and regional entrepreneurship policies. These findings show that motivated to overcome the challenges of a weak institutional context and pursue their entrepreneurial path, these Romanian SaaS entrepreneurs’ international presence and innovative performance are relational manifestations of bonding and bridging social capital-based networks.