Networked resource access and networked growth: A double network hypothesis on the innovative entrepreneurial firm

Abstract

Through an empirical study on new innovative entrepreneurial firms, we test the hypothesis that there are positive complementarities between firms’ networked access to human, technical and financial resources and the networked growth of those firms. This “double network hypothesis” supports a view of entrepreneurial firms generating value through shifting combinations of resources and growing by external networks, rather than as a necessarily unique combination of highly specific resources. In addition, the test of complementarities between types of networks bringing resources to the firm and types of networks through which growth occurs, contributes a much needed specification of the sources of complementarities among organizational practices, at least as far as network practices are concerned.