Social capital and strategy effectiveness: an empirical study of entrepreneurial venturesin a transition economy
EDN: PUXBUF
Аннотация
Although new ventures’ competitive positioning and their founders’ social networks are both recognized as important in the context of transition economies, not much is known about their multiplicative effect on performance. We build on the strategic management literature and social network theory to develop theoretical predictions about the role of competitive strategies and social capital for entrepreneurial performance. These are tested with survey data from Bulgaria. We find that both the venture’s competitive strategic positioning and the founder’s networking positively influence performance. The hypothesized moderating effect of networking for the relationship between differentiation strategy and performance received only tentative support. Contrary to expectations, we find a negative moderating effect of networking for the relationship of cost leadership with performance. These results suggest that the entrepreneur’s network plays a role in shaping how strategies influence performance by possibly upholding differen‑ tiation and de‑emphasizing cost leadership strategy. Implications for managerial practice and public policy are discussed.
Список литературы
1. Acquaah, M. 2012. Social networking relationships, firm-specific managerial experience, and firm performance in a transition economy: A comparative analysis of family owned and nonfamily firms. Strategic Management Journal, 33 (10): 1215-1228.
2. Acquaah, M. 2007. Managerial social capital, strategic orientation, and organizational performance in an emerging economy. Strategic Management Journal, 28 (12): 1235-1256.
3. Acquaah, M., Yasai-Ardekani, M. 2008. Does the implementation of a combination competitive strategy yield incremental performance benefits? A new perspective from a transition economy in Sub-Saharan Africa. Journal of Business Research, 61: 346- 354.
4. Aldrich, H. E., & Carter, N. M. 2004. Social networks. In W. B. Gartner, K. G. Shaver, N. M. Cart- er, & P. D. Reynolds (Eds.), Handbook of entrepreneurial dynamics: The process of business creation, pp. 324-335. Thousand Oaks, CA: Sage.
5. Aldrich, H. E., & Kim, P. H. 2007. Small worlds, in- finite possibilities? How social networks affect entrepreneurial team formation and search. Strategic Entrepreneurship Journal, 1: 147-165.
6. Aldrich, H. E., & Zimmer, C. 1986. Entrepreneur- ship through social networks. In D. L. Sexton, & R. Smilor (Eds.), The art and science of entrepreneurship, pp. 2-23. Cambridge, MA: Ballinger.
7. Baron, R. A. 2007. Behavioral and cognitive factors in entrepreneurship: Entrepreneurs as the active element in new venture creation. Strategic Entrepreneurship Journal, 1: 167-182.
8. Batjargal, B. 2003. Social capital and entrepreneurial performance in Russia: A longitudinal study. Organization Studies, 24 (4): 534-556.
9. Baum, J. R., Locke, E. A., & Smith, K. G. 2001. A multidimensional model of venture growth. Academy of Management Journal, 44 (2): 292-303.
10. Bourdieu, P. & Wacquant, L. 1992. An invitation to reflexive sociology. Chicago: University of Chicago PressChicago.
11. Burt, R. S. 1992. Structural holes: The social structure of competition. Boston: Harvard University Press.
12. Burt, R. S. 1997. The contingent value of social capital. Administrative Science Quarterly, 42: 339- 365.
13. Carter, N. M., Stearns, T. M., Reynolds, P. D., & Miller, B. A. 1994. New venture strategies: Theory development with an empirical base. Strategic Management Journal, 15: 21-41.
14. Chandler, G. N., & Hanks, S. H. 1994. Resource- based capabilities, venture strategies, and venture performance. Journal of Business Venturing, 9: 331-349.
15. anis, W. M., Chiaburu, D. S., & Lyles, M. A. 2010. The impact of managerial networking intensity and market-based strategies on firm growth during institutional upheaval: A study of small and medium-sized enterprises in a transition economy. Journal of International Business Studies, 41: 287-307.
16. Davies, H., & Walter, P. 2004. Emergent patterns of strategy, environment, and performance in a transition economy. Strategic Management Journal, 25: 347-364.
17. DiMaggio, P. J., & Powell, W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Socio- logical Review, 48, 147-160.
18. Ebben, J. J., & Johnson, A. C. 2005. Efficiency, flexibility, or both? Evidence linking strategy to performance in small firms. Strategic Management Journal, 26: 1249-1259.
19. Florin, J., Lubatkin, M., & Schulze, W. 2003. A social capital model of high growth ventures. Academy of Management Journal, 46 (3): 374-384.
20. Galaskiewicz, J., & Zaheer, A. 1999. Networks of competitive advantage. In S. Andrews & D. Knoke (Eds.), Research in the sociology of organizations, 237-261. Greenwich, CT: JAI Press.
21. Glanville, J. L. 2004. Voluntary associations and social network structure. Sociological Forum, 19 (4): 465-491.
22. Greve, A., & Salaff, J. W. 2003. Social networks and entrepreneurship. Entrepreneurship Theory and Practice, 28 (1): 1-22.
23. Gulati, R., & Gargiulo, M. 1999. Where do interorganizational networks come from? American Journal of Sociology, 104 (5): 1439-1493.
24. Harman, H. 1967. Modern factor analysis. Chicago: University of Chicago Press. Hite, J. M., & Hesterly, W. S. 2001. The evolution of firm networks: From emergence to early growth of the firm. Strategic Management Journal, 22 (3): 275- 286.
25. Hoang, H., & Antoncic, B. 2003. Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18:165-187.
26. Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M. 2000. Strategy in emerging economies. Academy of Management Journal, 43 (3): 249-267.
27. Jack, S. L., & Anderson, A. R. 2002. The effects of embeddedness on the entrepreneurial process. Journal of Business Vernturing, 17: 467-487.
28. Judd, C. M., Smith, E. R., Kidder, L. H. 1991. Research methods in social relations (6th ed.). Fort Worth, TX: Harcourt Brace Jovanovich.
29. Kalantaridis, C. & Bika, Z. 2006. Local embedded- ness and rural entrepreneurship: Case-study evidence from Cumbria, England. Environment and Planning A, 38: 1561-1579.
30. Kelley, D. J., Singer, S., & Herrington, M.. 2011. Global entrepreneurship monitor: 2011 global report. Wellesley, MA: Babson College and the Global Entrepreneurship Research Association (GERA).
31. Khanna, T., & Palepu, K. 1997. Why focused strategies may be wrong for emerging markets. Harvard Business Review, 75 (4): 41-49.
32. Krackhardt, D. 1990. Assessing the political land- scape: Structure, cognition, and power in organizations. Administrative Science Quarterly, 35: 342- 369.
33. Lee, C., Lee, K., & Pennings, J. M. 2001. Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22: 615-640.
34. Li, H., & Zhang, Y. 2007. The role of managers' political networking and functional experience in new venture performance: Evidence form China's transition economy. Strategic Management Journal, 28 (8): 791-804.
35. Lin, B., Li, P., & Chen, J. 2006. Social capital, capabilities, and entrepreneurial strategies: A study of Taiwanese high-tech new ventures. Technological Forecasting and Social Change, 73: 168-181.
36. Lin, N., & Dumin, M. 1986. Access to occupations through social ties. Social Networks, 8: 365-385.
37. Luo, Y. 1999. Environment-strategy-performance relations in small businesses in China: A case of township and village enterprises in Southern China. Journal of Small Business Management, 37-52.
38. Lyles, M. A., Saxton, T., & Watson, K. 2004. Venture survival in a transitional economy. Journal of Management, 30 (3): 351-375.
39. Manev, I. M., Gyoshev, B. S., & Manolova, T. S. 2005. The role of human and social capital and entrepreneurial orientation for small business performance in a transition economy. International Journal of Innovation and Entrepreneurship Management, 5 (3/4): 298-318.
40. McDougall, P. P., Robinson, R. B., & DeNisi, A. S. 1992. Modeling new venture performance: An analysis of new venture strategy, industry structure, and venture origin. Journal of Business Ven- turing, 7: 267-289.
41. McGrath, C. A., Vance, C. M., & Gray, E. R. 2003. With a little help from their friends: Exploring the advice networks of software entrepreneurs. Creativity and Innovation Management, 12 (1): 2-10.
42. Ministry of Economy, Energy, and Tourism. 2008. Annual Report on the Condition and Development of SMEs in Bulgaria. Sofia, Bulgaria. Available on- line at http: //www.mi.government.bg/eng/ind/ econ/docs.html?id=162491 (accessed May 21, 2010).
43. Neuman, W. L. 2003. Social research methods: Qualitative and quantitative approaches (5th Ed.). Boston, MA: Allyn & Bacon.
44. Ostgaard, T. A., & Birley, S. 1996. New venture growth and personal networks. Journal of Business Research, 36: 37-50.
45. Peng, M. W. 2001. How entrepreneurs create wealth in transition economies. Academy of Management Executive, 15 (1): 95-108.
46. Peng, M. W. 2003. Institutional transitions and strategic choices. Academy of Management Review, 28 (2): 275-296.
47. Peng, M. W., & Heath, P. S. 1996. The growth of the firm in planned economies in transformation: Institutions, organizations and strategic choice. Academy of Management Review, 21: 492-528.
48. Peng, M. W., & Luo, Y. 2000. Managerial ties and firm performance in a transition economy: The nature of a micro-macro link. Academy of Management Journal, 43 (3): 486-501.
49. Podsakoff, P. M., & Organ, D. W. 1986. Self-reports in organizational research: Problems and prospects. Journal of Management, 12 (4): 531- 545.
50. Porter, M. E. 1980. Competitive Strategy. New York, NY: The Free Press. Porter, M. E. 1996. What is strategy? Harvard Business Review, Nov-Dec: 61-78.
51. Puffer, S. M., & McCarthy, D. J. 2001. Navigating the hostile maze: A framework for Russian entrepreneurship. Academy of Management Executive, 15 (4): 24-38.
52. Ruef, M., Aldrich, H. E., & Carter, N. M. 2003. The structure of founding teams: Homophily, strong ties, and isolation among US entrepreneurs. American Sociological Review, 68 (2): 195-222.
53. Sanchez, R. 1995. Strategic flexibility in product competition. Strategic Management Journal, 16: 135-159.
54. Shipilov, A., & Danis, W. 2006. TMG social capital, strategic choice and firm performance. European Management Journal, 24 (1): 16-27.
55. Smallbone, D., & Welter, F. 2001. The distinctive- ness of entrepreneurship in transition economies. Small Business Economics, 16 (4): 249-262.
56. Spanos, Y. E., Zaralis, G., Lioukas, S. 2004. Strategy and industry effects on profitability: Evidence from Greece. Strategic Management Journal, 25, 139-165.
57. Stinchcombe, A. L. 1965. Social structures and organizations. In March, J. G. (Ed.) Handbook of Organizations, pp. 142-193. Chicago: Rand McNally.
58. Stuart, T. E., & Sorenson, O. 2007. Strategic networks and entrepreneurial ventures. Strategic Entrepreneurship Journal, 1: 11-227.
59. Svejnar, J. 2006. Strategies for growth: Central and Eastern Europe. Ann Arbor, MI: International Policy Center at the Gerald R. Ford School of Public Policy, Ross School of Business, and Department of Economics, University of Michigan. Accessed online on May 29, 2009 at http://www.internationalpolicy.umich.edu/policy briefs/StrategiesforGrowth09-28-06.pdf.
60. Thornhill, S., & White, R. E. 2007. Strategic purity: A multi-industry evaluation of pure vs. hybrid business strategies. Strategic Management Journal, 28 (5): 553-561.
61. Uzzi, B. 1996. The sources and consequences of embeddedness for economic performance of organizations. American Sociological Review, 61 (4): 674-698.
Рецензия
Для цитирования:
Manev I., Manolova T., Gyoshev B., Harkins J. Social capital and strategy effectiveness: an empirical study of entrepreneurial venturesin a transition economy. Современная конкуренция. 2012;(6):57-70. EDN: PUXBUF
For citation:
Manev I., Manolova T., Gyoshev B., Harkins J. Social capital and strategy effectiveness: an empirical study of entrepreneurial venturesin a transition economy. Journal of Modern Competition. 2012;(6):57-70. EDN: PUXBUF
Послать статью по эл. почте 