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Strategic utilization of entrepreneur's resource-based social capital and small firm growth

Published online by Cambridge University Press:  02 February 2015

Tina Bratkovic ,
Bostjan Antoncic  and
Mitja Ruzzier
Tina Bratkovic
Affiliation:
Faculty of Management, University of Primorska, Koper, Slovenia
Bostjan Antoncic
Affiliation:
Faculty of Management, University of Primorska, Koper, Slovenia
Mitja Ruzzier
Affiliation:
Faculty of Management, University of Primorska, Koper, Slovenia
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Abstract

An entrepreneur's social capital can be important for their firm's growth. The creation of a network can be largely determined by strategy. This study makes a contribution by developing and testing a model of the firm growth driven by the entrepreneur's social capital that considers the entrepreneur's resource acquisition network ties. In the model a controversial combination of strong and weak tie arguments is proposed. Regression analysis was conducted using structured-questionnaire survey data from small firm entrepreneurs in Slovenia. The findings suggest that firm growth can be influenced by strategic utilization of the entrepreneur's resource-based social capital. In particular, resource network intensity can have a positive influence on firm growth, whereas the central resource ‘network person friendship’ can be negatively related to firm growth.

Keywords

strategic utilizationsocial capitalresourcesnetworksgrowthsmall firms
Type
Research Article
Information
Journal of Management & Organization , Volume 15 , Issue 4 , September 2009 , pp. 486 - 499
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2009

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