Do social networks encourage risk-taking? Evidence from bank CEOs

Understanding the relationship between networks, startup risk-taking behaviour, and digitalization: the role of ecosystem coopetition

“…The sum of actual and potential resources available from the network is called social capital (Nicholson, Alexander, & Kiel, 2004). Further research on social capital shows that this capital may affect entrepreneur risk-taking propensity and cause startups to take risks more actively (e.g., Dbouk et al, 2020;Masiello & Izzo, 2019;Rodriguez-Gutierrez, Romero, & Yu, 2020). Thus, based on SNT and SCT, the present article proposes that social networks may promote startup risk-taking behaviour through various resources in the network.…”

“…At the same time, research on the relationship between ecosystems and risk-taking in the field of entrepreneurship is slightly insufficient. This article thus responds to the call by Dbouk et al (2020) to explore the relationship between social networks and risk-taking in different situations. Second, we consider coopetition to be the essential feature of the entrepreneurial ecosystem.…”

“…Social networks and risktaking are closely related, as risk-taking is a resource-consuming activity, and networks may help startups obtain resources more conveniently and cheaply (Ferris, Javakhadze, & Rajkovic, 2019;Luu & Ngo, 2019). The existing literature has deeply explained how different types of social networks (e.g., networks with different objects and networks with different characteristics) affect corporate resources and entrepreneur risk propensity and ultimately increase the level of risktaking (e.g., Bembom & Schwens, 2018;Boso, Story, & Cadogan, 2013;Carnabuci & Dioszegi, 2015;Dbouk, Fang, Liu, & Wang, 2020;Efendic, Mickiewicz, & Rebmann, 2015;Fogel & Nehmad, 2009). These relationships have undergone tremendous changes, as digital technology is empowering an unprecedented convergence of networks, computing, contents, and communications 1 (Elia, Margherita, & Passiante, 2020).…”

Accelerating Innovation Efficiency through Agile Leadership: The CEO Network Effects in China

“…The CEO's personal links to government, shareholders, other firms, and economic agents create new information-sharing channels and obtain valuable resources for the connected individuals. Studies in the social capital literature find that career concerns cause executives to have low-risk tolerance and forgo innovative projects (Jensen and Meckling, 1976;Griffin et al, 2021), meaning that a large network size relates to risk-taking behaviors (Dbouk et al, 2020). However, such concerns can be reduced if social capital could minimize information asymmetry (Ferraris et al, 2021;Hughes et al, 2020) Dbouk et al (2020).…”

“…Studies in the social capital literature find that career concerns cause executives to have low-risk tolerance and forgo innovative projects (Jensen and Meckling, 1976;Griffin et al, 2021), meaning that a large network size relates to risk-taking behaviors (Dbouk et al, 2020). However, such concerns can be reduced if social capital could minimize information asymmetry (Ferraris et al, 2021;Hughes et al, 2020) Dbouk et al (2020). and Hoi et al (2019 find that CEO with strong social networks (e.g., outside directorships) is more comfortable with making the jump from one to another company even when there are not many employment options in the labor market.…”