Why Networks Enhance the Progress of New Venture Creation: The Influence of Social Capital and Cognition
- 1 March 2009
- journal article
- Published by SAGE Publications in Entrepreneurship Theory and Practice
- Vol. 33 (2), 527-545
- https://doi.org/10.1111/j.1540-6520.2009.00302.x
Abstract
Why does social capital influence the progress of new venture creation for some entrepreneurs more than others? Our investigation suggests that social capital is not enough; that the type of person involved in network relationships matters to new venture creation. We test the effects of the interplay of social capital and cognition on a sample of 269 entrepreneurs. Our results confirm that social networks and relational capital enhance levels of illusion of control, which is directly related to the progress of new venture creation. We find marginal support for the relationship between social capital and risk propensity.Keywords
This publication has 48 references indexed in Scilit:
- Beyond social capital: the role of entrepreneurs' social competence in their financial successJournal of Business Venturing, 2003
- Social Capital: Prospects for a New ConceptAcademy of Management Review, 2002
- Counterfactual thinking and venture formation: The potential effects of thinking about “what might have been”Journal of Business Venturing, 2000
- Perspective Making and Perspective Taking in Communities of KnowingOrganization Science, 1995
- Fools Rush in? The Institutional Context of Industry CreationAcademy of Management Review, 1994
- The proactive component of organizational behavior: A measure and correlatesJournal of Organizational Behavior, 1993
- The Operation of Intentions in Time: The Emergence of the New VentureEntrepreneurship Theory and Practice, 1992
- The role of networks in the entrepreneurial processJournal of Business Venturing, 1986
- The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations.Journal of Personality and Social Psychology, 1986
- Risk Taking Propensity of Entrepreneurs.The Academy of Management Journal, 1980