The Role of Networks in the Entrepreneurial Process

Cranfield School of Management, USA
Journal of Business Venturing (Impact Factor: 3.06). 12/1985; 1(1):107-117. DOI: 10.1016/0883-9026(85)90010-2
Source: RePEc


The relationship between the quality of political institutions and the performance of regulation has recently assumed greater prominence in the policy debate on the effectiveness of infrastructure industry reforms. Taking the view that political accountability is a key factor linking political and regulatory structures and processes, this article empirically investigates its impact on the performance of regulation in telecommunications in time-series--cross-sectional data sets for 29 developing countries and 23 developed countries during 1985--99. In addition to confirming some well-documented results on the positive role of regulatory governance in infrastructure industries, the article provides empirical evidence on the impact of the quality of political institutions and their modes of functioning on regulatory performance. The analysis finds that the impact of political accountability on the performance of regulation is stronger in developing countries. An important policy implication is that future reforms in these countries should give due attention to the development of politically accountable systems. Copyright The Author 2009. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank. All rights reserved. For permissions, please e-mail:, Oxford University Press.

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    • "Lofsten and Lindelof (2001) suggest that entrepreneurial firms located in incubators are more likely to have relationship with universities than other entrepreneurial firms. Some authors also highlight the role of incubators in developing networks among incubatees (e.g., Bøllingtoft and Ulhøy, 2005; Bøllingtoft, 2012), typically an informal nature of networking (Lyons, 2000; Birley, 2000). Vanderstraeten and Matthyssens (2012) argue that by utilizing external and internal alignments an incubator can achieve service differentiation that can enhance the value of the incubatees, while Campbell and Allen (1987) suggest that internal networking among the incubatees inside an incubator is equally important as external networking and emphasise the synergy between incubatees. "
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    ABSTRACT: The study of the contribution of incubators to economic growth started to gain momentum in the 1980s, following the growth of the incubation phenomenon. While acknowledging the challenge of evaluating incubators' outcomes, we shift the focus from incubators' performance to their internal processes, in particular, the interrelationships through which the incubator stakeholders share knowledge. The literature suggests that small new ventures tend to fail because they lack managerial experience and ability to raise capital in an early stage. Incubators are expected to overcome these obstacles by offering experienced monitoring skills and by enhancing access to capital at a firm's early stage. However, empirical results of incubators' ability to perform their role are often contradictory, making policy makers question their effectiveness. We provide evidence from Australian and Israeli incubators. Our findings suggest that collaborations between incubatees, graduated incubatees, and incubator management increase the incubatees' knowledge of technology and market in both countries. Collaboration between incubatees and incubator management also increase incubatees' financial knowledge and their likelihood of raising capital. We also found that universities played a modest role as a source of new ideas for incubatees, but a more important role in later stages of incubatees' new product development processes.
    Technovation 08/2015; 41-42(July-August):11-24. DOI:10.1016/j.technovation.2015.03.002 · 2.53 Impact Factor
    • "This is consistent with research in information search, which distinguishes between expert and novice decision makers and suggests that experienced entrepreneurs are more likely to rely on a richer range of information (Cooper et al., 1995). By the same token, experienced entrepreneurs are more likely to be able to leverage their social networks to attract experienced and trusted individuals, with whom they have had past dealings, to be their advisors (Birley, 1985). It leads to the following hypothesis: "
    08/2015; 4(2):190-208. DOI:10.1108/SAJGBR-04-2014-0021
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    • "All cases regard their suppliers and customers as their weak ties in the start-up stage of the business but then this varies in the developing stages. This broad finding supported Martinez and Aldrich's (2011); Jamil and Hassan, (2014); and Birley' s (1985) empirical work which found that relationships with individual-based or firms-based customers and suppliers are relatively weak in the initial stage for they only involve instrumental transactions, but then become strong when frequent interactions occur, increasing the intensity of trust thus creating an " arms-length " with " embedded " transactions. This is where the network evolvement process occurs. "
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    ABSTRACT: This paper seeks to empirically explore the dynamics roles of strong and weak ties within Muslim female entrepreneurs’ networks during critical problems (“tipping points”), and how this affects the subsequent performance of the small businesses. The literature review shows that many studies have explored the mix of strong and weak ties in small businesses linking them to stages of business development. More recent literature, however, has conceptualised firm growth through the notion of critical problems or ‘tipping points’ that must be successfully tackled in order to continue on a development path. While the importance of network ties has been well documented in relation to growth stages, limited work has investigated the contribution that strong and weak ties make as a firm faces specific “tipping points”, thus showing a call for further investigation. This is a qualitative study involving four cases of small-sized food manufacturing firms in the Southern region of Malaysia. The main data collection method is an in-depth interview with the owner-managers using Critical Incident Interview Technique. The triangulation of data has been carried out by interviewing individuals who are seen as strong and weak ties of the network. They suggest that the dynamics roles of strong and weak ties are essential during the “tipping points”. The findings have implications for firms, networks and the government. It also provides a detailed understanding on the nature of entrepreneurial network of entrepreneurs in Malaysia. Recommendations are presented that address the need to support small businesses in dealing with critical problems in relation to their networking practices.
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