14979 - EntrepreneursandNetworking Gulati

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Entrepreneurs and Networking Gulati  et al  (2000): “The image of atomistic actors  competing for profits against each  other in an  impersonal market   place is increasingly  inadequate   in a World in which  firms are embedded in networks of social, professional and exchange relationships  with  other organizational actors”. - Business environment is increasingly turbulent , therefore networking is needed  as a strategy to achieve success. (e.g. resolve liabilities of newness) Henderson (1999): A  liability of newness  describes the fact that new and small firms  find it difficult to create value  because of their lack of resources , knowledge and social   capital  compared to larger firms. BUT! – Resources and knowledge  evolve   over time.   Liabilities of obsolescence : As  firms grow they see the problem of the incumbents curse  because their resources tend to  become misaligned  with their environments e.g.  green tech . - Technology strategy can profoundly affect the aging process because the accumulation  of technological capabilities is path dependent . Why network? Hughes   et al   (2007):  Strategic network   definition: “Locus of firms potential   and  realised web of relationships , which are composed of enduring inter-firm ties that are of  strategic significance to the firm”. - Objective is to access resources and acquisition of knowledge. Davidsson and Honig (2003): Human capital theory - maintains that knowledge provides individuals with increases  in  their cognitive abilities , leading to more productive and efficient potential activity Social capital theory - refers to the ability of actors to extract benefits  from their social   structures, networks and memberships . E    .G Business Incubators-     Combine the scale and scope of large corporations and the  entrepreneurial spirit  of small venture capital firms. Hughes  
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This note was uploaded on 02/22/2012 for the course AG 3306 taught by Professor Staff during the Fall '11 term at Texas State.

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14979 - EntrepreneursandNetworking Gulati

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