The Dynamics of Entrepreneurial Networks

Abstract

This study attempts to analyze the dynamic impact of the entrepreneurial network at early stages of high technology start-ups, namely conception, gestation and infancy phases, located at a university based incubator. Empirical results show that, in different stages of a new enterprise, the use of formal or informal components of entrepreneurial network imposes distinctive impacts on performance of the start-ups. Prior ties that helped start-ups to acquire critical resources and capabilities proved to be dysfunctional in the latter stages. Conversely, weak or insignificant ties that were created in earlier periods provided start-ups with critical resources or capabilities for growth and survival. Consequently, results revealed that the formal efforts of incubator to facilitate such networks, such as mentoring activities, organized events and provision of access to local and international organizations, positively influenced start-up survival and growth.

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