ARE ENTREPRENEURS’ NETWORKS DYNAMIC? A REPLICATION STUDY TESTING CHANGES IN ENTREPRENEURS’ NETWORKS DURING NEW VENTURE DEVELOPMENT
Abstract
Entrepreneurs’ networks are important for resource acquisition during early venturing. Interestingly, resource needs rapidly change during early venture development, which may necessitate a change in entrepreneurs’ networks. This study examines how the size of an early-stage entrepreneur’s network affects the subsequent structural (e.g., size) and content (e.g., knowledge diversity) character of their network. Additionally, how the strength of an early-stage entrepreneur’s network ties affects the subsequent structural (e.g., size and tie strength) and content (e.g., knowledge diversity) character of their network is explored. Data from the PSED-I were used to analyze the relationships. Results suggest the relationship between network size at time one and network size at time two is positive. Results further suggest a negative relationship between the number of weak ties at time one and the number of strong ties at time two. In addition, a positive relationship was found between network size at time one and network knowledge diversity at time two. Overall, this study contributes by providing a replication of results from recent work examining dynamics of entrepreneurs’ networks and it extends research on the topic by testing proposals utilizing panel data and through integrating novel theoretical perspectives.
