Leveraging ties: the contingent value of entrepreneurial teams' external advice networks on Indian software venture performance

Abstract

This study investigates the impact of entrepreneurial teams' external networks on their ventures' performance. We first argue that ventures whose entrepreneurial teams span many structural holes in their external advice networks experience higher performance. We then propose that network ties are not uniform in their effect, but rather are contingent on two distinct features of entrepreneurial teams: (i) their strategic consensus—extent of agreement on key goals and strategies within the team—and (ii) internal cohesion—extent of interpersonal friendships within the team. Finally, we propose that team demographics and team networks complement (rather than substitute) each other. Data from Indian software ventures provide support for these arguments. We extend entrepreneurship research by highlighting how venture teams' internal processes and external networks jointly shape performance outcomes. We also add to the literature on team networks by drawing attention to the role of strategic consensus as a distinct pathway through which teams can leverage their external networks.

The production of entrepreneurial opportunity: a constructivist perspective

“…However, as suggested earlier, social ties that link the entrepreneur to individuals outside the immediate peer group are also important. These ties exhibit a compounding dynamic, because prior research suggests that preexisting ties can function as mechanisms through which new and signifi cant ties are created, which often leads to increased resource access (Podolny and Baron, 1997;Vissa and Chacar, 2009). The constructivist logic guiding this article implies that social ties play a different role in opportunity enactment than the discovery perspective would suggest.…”

The Impact of Institutional Complexity and Top Management Characteristics on Executive Compensation and Firm Performance

“…Based on a sample with 301 U.S. firms and 1,404 observations, our results support most hypotheses proposed by this study. These findings once again document the importance of tailoring internal components with external environments (Prescott, 1986;Vissa & Chacar, 2009). The directions for future research, at least, have the following three perspectives.…”

“…Second, this dissertation will contribute to the theory on top executives by showing that TMT social capital can complement CEO intellectual/social capital (Amit & Schoemaker, 1993;Krishnan, Miller, & Judge, 1997). Finally, this dissertation applies the strategic contingency perspective to explore the match between information-processing needs and information-processing capabilities in the context of MNEs and once again to show the importance of tailoring internal components with external environments (Prescott, 1986;Vissa & Chacar, 2009). …”

The Mediating Effect of Innovation on the Relationship between Corporate Reputation and Performance in U.S. Firms

“…Consequently, the firm innovation capability is expected to be positively related to firm performance. Various studies used different financial indicators to assess firm success or performance; some of them used return on investment (ROI), return on equity (ROE), return on sales (ROS), return on assets (ROA) (Deephouse, 2000), and sales growth (Vissa and Chacar, 2009). These financial indicators are considered appropriate proxies for performance measurements and they are widely used in the literature.…”

“…The following table lists variables with independent, dependent, or both roles in the dissertation. confers "economies of scale, increased power, the ability to withstand environmental jolts, and eventually, likely greater profits" (Vissa andChacar, 2009, p. 1183). Also, as this dissertation is principally assessing intangible assets (e.g., corporate reputation, knowledge, innovation capability) which are very complex in their performance assessment or measurement, the most appropriate performance outcome is sales growth of the company.…”