Start-up firms’ networks for innovation and export: facilitated and constrained by entrepreneurs’ networking in private and public spheres

Abstract

Research on how start-up firms utilize networks has focused on direct effects of either the personal network around the entrepreneur or the formal collaboration network around the firm. Combining those approaches, we model how a firm's collaboration network is embedded in the personal network around the entrepreneur. With data from the Global Entrepreneurship Monitor on 8918 start-up firms in 40 countries surveyed during 2012-2013, we examine (1) how entrepreneurs' networking in private and public spheres is impacting firms' collaborative networking, (2) how both the personal network and the firm network are impacting performance in forms of innovation and exporting, and (3) how embeddedness of the firm network in the private and public sphere networks around the entrepreneur is affecting innovation and export. The analyses show that the firm network as well as innovation and export are enhanced by the networking in the public sphere, but reduced by networking in the private sphere. Moreover, the benefits of firm network for innovation and export are strengthened by networking in the public sphere but weakened by networking in the private sphere. Finally, we find that innovation is a driver for export, and that this benefit is enhanced by networking in the public sphere, but decreases with networking in the private sphere. These findings refine our knowledge of the functioning of firms' networking for innovation, especially the positive effects of networking in the public sphere and negative effects of networking in the private sphere.

Impact of innovation and international networking on firm openness to foreign markets strategy in Middle East and North Africa: individualism' moderating effect

“…• Firm size positively linked to export level Our results corroborate those of the study 8,918 start-up firms in 40 countries GEM 2012-2013 (Jensen and Schott, 2015) • Innovation impacts positively export level…”

“…Our model shows the positive effect of innovation on the level of firms' exports, so our results are supported by previous research (Caldera, 2010;Filipescu et al, 2013;Jensen and Schott, 2015;Lachenmaier and Wößmann, 2006;Pla-Barber and Alegre, 2007). The authors confirm the innovation-export causality in Western countries.…”

Relacionamentos Interorganizacionais na Bioindústria Amazonense na Percepção dos Empresários

“…Friendship ties, however, does not necessarily lead to cooperation in a horizontal relationship. This is the case of MA13, whose respondent said they "exchanged information … but informally" with competitors, which corroborates with the research by Jensen and Schott (2015). It is understood that the inter-organizational relationships in this industry are informal, and the partnerships are maintained because of friendship ties.…”

“…On the other hand, Jensen and Schott (2015) observe that the relationships with family and friends reduce the extension of the network of firms, negatively impacting the increase of innovation in the firms of the network. In the Amazon bioindustry, Andrade (2017) identified that entrepreneurs do not feel secure in partnerships with firms of the same activity, despite the need to increase their production capacities, market share, and exploration Interorganizational Relationships in the Amazon Biotech Industry Based on Entrepreneurs´ Perceptions 677 RAC, Maringá, v. 23, n. 5, SI Technology Amazon, art.…”

Effects of R&D, networking and leadership roles on environmental innovation adoption in Vietnam’s SMEs

“…They can consist of high transaction costs and the challenges of achieving tacit knowledge (Dhanaraj & Parkhe, 2006) or the risk of malfeasance (Dyer & Singh, 1998). Furthermore, relational experience, trust, and reciprocity might stimulate inter-firm complementarity and shared understandings, and thereby reduce cognitive barriers to knowledge transfer and enhance the benefits of inter-firm relationships (Jensen & Schøtt, 2015). It can be seen that there is a great deal of theoretical and empirical evidences on the associations between networks and innovations.…”