Exploring the effects of network configurations on entrepreneurial orientation and firm performance: an empirical study of new ventures and small firms

Abstract

Prior studies have suggested that networks are important for new ventures and small firms as a provider of access to entrepreneurial opportunities and as a tool to increase firm performance. Although the strategic value of networks on a general level is undisputed, one major shortcoming of prior studies has been to evaluate the effects of specific network configurations. Moreover, small firms have all too often been treated as a homogeneous group, expected to reveal similar needs and patterns of behavior. The purpose of this explorative study was therefore to examine the effects of different network configurations on entrepreneurial orientation (EO) and performance for two categories of small firms - new ventures and established small firms. The results were achieved by using empirical data from two independent samples of new ventures (n = 171) and small firms (n = 291) and show that network relationships have quite different effects in the two samples. While networking is overall positively linked to EO and performance for small firms, no positive effect from networking is evidenced for new ventures' EO and performance. For both samples, we found a strong link between EO and performance. This paper concludes with a discussion on the results and suggestions for future research. [ABSTRACT FROM AUTHOR]