Topic: INSTITUTIONAL POLYCENTRISM, ENTREPRENEURS SOCIAL NETWORKS, AND NEW VENTURE GROWTH
Speaker: Professor Anne Tsui
Time: 10:00-11:30am, Wednesday, June 13, 2012
Location: Room 213, New Building of GSM, Peking University.
What is the interrelationship among formal institutions, social networks, and new venture growth? Drawing on the theory of institutional polycentrism and social network theory, we examine this question using data on 637 entrepreneurs from four different countries. We find that the confluence of weak and inefficient institutions has a positive effect on entrepreneurial network structural holes (i.e., entrepreneurs networks have more structural holes) but has a negative effect on the revenue growth of new ventures. A network structural holes have a positive effect on the revenue growth. The positive effect of structural holes on the revenue growth is stronger when there is a confluence of weak and inefficient institutions. The contributions and implications of these findings are discussed.