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Emerald Management Reviews
ISSN: 1474-6085
Online from: 1988
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Entrepreneurial orientation and new venture performance: the moderating role of intra- and extraindustry social capital
| Title: | Entrepreneurial orientation and new venture performance: the moderating role of intra- and extraindustry social capital |
|---|---|
| Author(s): | Stam W, Elfring T |
| Journal: | Academy of Management Journal, Feb 2008, Volume: 51 Issue: 1 pp.97-111 (15 pages) |
| Issn: | 0001-4273 |
| Keywords: | Competitive Strategy, Entrepreneurs, Organizational Performance |
| Article type: | Research paper |
| Reference: | 37AN104 (Permanent URL) |
| Abstract: |
Design/methodology/approach - Defines entrepreneurial orientation as the alternatives of 'undoing competitors' or 'live and let live'. The empirical background is the emerging open source software industry in the Netherlands, and 125 firms are studied. Findings - Moderating factors include network centrality (being the confluence of informal links with other firms), and extra-industry bridging ties (personal ties to other organizations). Extensive bridging ties are linked with a strong relationship between entrepreneurial orientation and performance. At high levels of bridging ties there is a stronger link between entrepreneurial orientation and performance for firms with relatively high network centrality, but at low bridging tie levels, the relationship between entrepreneurial orientation and performance is weaker for firms with high network centrality. Research limitations/implications - A strong entrepreneurial orientation may constrain performance when a central network position is not accommodated by enough extra-industry bridging ties. Originality/value - Shows how different social capital conduits shape the relationship between entrepreneurial behaviour and firm performance. |
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