Exploring the evolution of supporter networks in the creation of new organizations

Networks are important to entrepreneurial success. However, most research in this area to date has merely addressed the what; namely, what types of networks enable success. We seek to extend this stream of research by answering the how and the why. In so doing, we elaborate on how entrepreneurs can...

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Bibliographic Details
Published in:Journal of business venturing 2013-03, Vol.28 (2), p.281-298
Main Authors: Newbert, Scott L., Tornikoski, Erno T., Quigley, Narda R.
Format: Article
Language:English
Subjects:
Entrepreneurs
Group dynamics
Growth models
Nascent entrepreneurs
Organizational emergence
Panel Study of Entrepreneurial Dynamics (PSED)
Social networks
Studies
Success factors
Supporter networks
Tie strength
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Summary:Networks are important to entrepreneurial success. However, most research in this area to date has merely addressed the what; namely, what types of networks enable success. We seek to extend this stream of research by answering the how and the why. In so doing, we elaborate on how entrepreneurs can develop their networks, arguing that in order to create new organizations, nascent entrepreneurs must acquire resources from an increasingly diverse set of relatively stronger and weaker ties throughout the emergence phase. We then hypothesize why this evolutionary path is effective across the various dimensions of tie strength. Analyzing data from the Panel Study of Entrepreneurial Dynamics I (PSED I) with multilevel random coefficient growth curve modeling, we find strong support for our hypotheses. We conclude by discussing the implications of our findings for both academics and practitioners. ► We examine how the strength of nascent entrepreneurs' ties to supporters evolves. ► We measure strength as duration, multiplexity, frequency, and emotional intensity. ► We measure emergence as cash flow position and perception. ► We find that the strength of supporter ties becomes more heterogeneous over time.
ISSN:0883-9026
1873-2003
DOI:10.1016/j.jbusvent.2012.09.003