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External networks of entrepreneurial teams and high technology venture performance in emerging markets

Author: Vissa, Balagopal ; Chacar, AyaINSEAD Area: Entrepreneurship and Family Enterprise In: Entrepreneurial strategies: new technologies in emerging markets - Cooper, Arnold C.;Alvarez, Sharon A.;Car - 2006 - Book Language: EnglishDescription: p. 187-205.Type of document: INSEAD ChapterNote: Please ask us for this itemAbstract: Using a sample of new software ventures, the authors provide evidence that entrepreneurial teams in India with large and sparse external advice networks provide performance advantages to their ventures. They also theorize that quality of ties is an important moderator of the impact of social network structure on new venture performance. The empirical evidence suggests that trustworthiness of network contacts is indeed an important contingency factor that moderates the relationship between network sparseness and new venture performance. Overall, their findings underscore the importance of social ties in emerging economies where such ties often substitute for missing or underdeveloped institutions.
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Using a sample of new software ventures, the authors provide evidence that entrepreneurial teams in India with large and sparse external advice networks provide performance advantages to their ventures. They also theorize that quality of ties is an important moderator of the impact of social network structure on new venture performance. The empirical evidence suggests that trustworthiness of network contacts is indeed an important contingency factor that moderates the relationship between network sparseness and new venture performance. Overall, their findings underscore the importance of social ties in emerging economies where such ties often substitute for missing or underdeveloped institutions.

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