The relationship between the entrepreneur’s personal network multiplexity and firm growth

Abstract

The purpose of the paper is to develop a consistent measure of the entrepreneurs' personal network multiplexity and to analyse its relationship to firm growth. The research goals were achieved with a quantitative approach. The data were collected with a structured questionnaire delivered to micro and small firms in Slovenia. The research results confirmed the multidimensionality of the network multiplexity concept and showed that it may influence firm growth. Entrepreneurs' personal networks represent an important form of support during the entrepreneurial process, therefore they need to be efficiently and carefully managed by entrepreneurs.

The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities

“…Therefore, findings did not confirm Hypothesis 1, stating "the entrepreneurial business network (EBN) has a significant positive relationship with sustainable performance of small firms". This outcome is in line with earlier studies [40,47]. Hypothesis 2 claimed "the entrepreneurial business network has a significant positive relationship with the firm's dynamic capabilities".…”

“…Thus, results have not approved Hypothesis 1. This outcome of Hypothesis 1 was in line with the support of previous literature surprisingly because Kregar and Antoncic (2014) and Parker (2018) also viewed the same finding that there was not a significant relationship between the variables of entrepreneurial business network and a small firm's sustainable performance in their studies [40,47].…”

“…Besides, reviews of the existing body of literature, numerous past studies affirmed the significant statistical relationships among business networks and small firms and SMEs sustainable performance [43][44][45]. In the previous investigations, Breat (2009), Bratkovič Kregar & Antončič (2016) and Palalić, Dana and Ramadani (2018) identified a significant positive relationship between business networks and sustainable performance of small firms [46][47][48]. Gronum, Verreynne and Kastelle (2012) recognized that the entrepreneurial business network influences significantly the achievements of small business firms [49].…”

Multidimensionality: A Cross-Disciplinary Review and Integration

“…Recent studies have begun to investigate how multiplexity affects organizational processes and outcomes. In general, multiplexity facilitates critical organizational processes, such as knowledge transfer (Aalbers et al, 2014) and knowledge sharing (Mäkelä, 2007), and enhances desirable organizational outcomes, such as firm performance (Bratkovič Kregar & Antončič, 2016) and organizational social capital (Arregle et al, 2007). Thus, multiplexity enriches relationships that promote key organizational processes and produce beneficial organizational outcomes.…”

“…Multiplexity refers to the overlap of individuals’ multiple social relations with others in a dyadic relationship (Verbrugge, 1979). Organizational research has mainly explored the effects of multiplexity on individuals’ attitudes, behaviors, and performance (e.g., Brass, Butterfield, & Skaggs, 1998; Claro, Gonzalez, & Claro, 2012) as well as organizational performance (e.g., Bratkovič Kregar & Antončič, 2016). By including multiplexity in our review, we acknowledge that individuals also define themselves through their social relations.…”