The strong versus weak tie effect on entrepreneurial processes: ICT-start-ups in the Netherlands

Abstract

The value of networks as an integral part of the explanation of entrepreneurial success is widely acknowledged.It is unclear, however, in what way certain networks influence the success of start-up companies.The question of this paper is: 'in what way does the entrepreneur's network contribute to the success of his start-up.'The focus is on improving our understanding of the causal mechanisms between the strong versus weak tie effect on three core entrepreneurial processes affecting performance, i.e. the ability of the entrepreneur to discover opportunities, to get resources, and to gain legitimacy.The network benefits are not uniform, we explore two contingencies, i.e. uncertainty and time.The networks of 30 ICT start-ups in the Netherlands were (re)constructed on the basis of in-depth interviews with the founders and desk research.We draw conclusions about the benefits of a particular mix of strong and weak ties to the ability of the start-up to survive and to grow.Acknowledgment: This study was made possible through a small grant from the Netherlands Organisation for Scientific Research (NWO) in the MES framework (Society & Electronic Highway, project number 014-43-609).We are deeply indebted to Dick Manuel for input and support of many kinds.

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