The transformation of network ties to develop entrepreneurial competencies for university spin-offs

Abstract

Social networks are integral to the emergence and development of new ventures but the temporal utility of networks is poorly understood. We consider the initial development of four university spin-offs and examine the formation and development of network ties to construct valuable entrepreneurial competencies. We develop a conceptual framework that explains how strong and weak network ties are strategically transformed in terms of strength and purpose depending on the type of competency sought and the business development need. We conclude that theoretical explanations of the new venture formation process need to incorporate not only network formation but also the role of network tie transformations.

Who is the academic entrepreneur? The role of graduate students in the development of university spinoffs

“…The difficulty of reconfiguring resources within university spinoffs is well-established in the literature and largely attributed to the limited, homophilous social networks of academic entrepreneurs (Hayter 2015a(Hayter , 2016Rasmussen et al 2015;Vohora 2004). Student entrepreneurs in our sample attend a well-regarded research university known for its entrepreneurial history and culture; indeed, many students came to MIT because of its entrepreneurial culture.…”

“…Other studies have similarly adopted a faculty-as-entrepreneur approach given their role as principal investigators on sponsored research projects, relatively uniform intellectual property guidelines for faculty who conduct federally-funded research, 2 as well as their academic rank and technical knowledge, factors important for the establishment of new spinoff companies (Bradley et al 2013a;Link et al 2007). Indeed, studies show that the individual academic entrepreneur, their entrepreneurial motivations and growth ambitions (Hayter 2011(Hayter , 2015aLam 2011) social networks (Hayter 2013(Hayter , 2016aRasmussen et al 2015), backgrounds (O'Gorman et al 2008), and access to resources (Wright et al 2007) are critical factors in the function and long-term success of university spinoffs.…”

How Student Entrepreneurs Develop Their Social Network Over Time During the Process of Starting a Company

“…This is a challenge for the student entrepreneur. The fact that the students are introduced to other entrepreneurs, mentors and students from other faculties helps them to expand their network (Lockett et al, 2017, Rasmussen et al, 2015. Variation of strong and weak ties in a network also gives significant better performance for start-ups (Baum et al, 2000;Newbert et al,2013).…”

Entrepreneurial Competencies and SMEs Business Success: The Contingent Role of External Integration

“…Entrepreneurial competencies are related with the performance of the firm and its competitiveness (Man et al, 2002), growth and success of business (Colombo &Grilli, 2005). According to many studies, the entrepreneur's psychological and behavioural, demographic characteristics, managerial and technical skills are the most important determinants for the performance and success or failure of small and medium sized enterprises (Rasmussen et al, 2011;Man, Lau, & Snape, 2008;Man, Lau, & Chan, 2002;Chandler & Hanks, 1994).It is very essential to understand entrepreneurs in the context of emerging economies because the entrepreneurial competencies for business growth and survival in emerging economies are different from those of in developed economies (Solesvik, 2012). Also Capaldo et al (2004) stated that the entrepreneurial competencies vary according to different contexts.…”