Resource Search, Interpersonal Similarity, and Network Tie Valuation in Nascent Entrepreneurs' Emerging Networks

Abstract

This article contributes to the entrepreneurship and network literatures by addressing the fundamental research question of how a new venture's initial network ties are formed. The authors focus on the broad network search evinced by nascent entrepreneurs at the very earliest stages of venture and network creation and examine some of the instrumental and interpersonal mechanisms driving nascent entrepreneurs' value attributions about the contacts met during this network search. The authors utilize a unique empirical data set of 1,407 entrepreneur-contact dyads collected during a 6-month period of real-time nascent venture activity. Their results suggest a view of new venture network construction in which the content benefits conferred through anticipated or real resource acquisition form a clear basis for entrepreneurs' assessments of value, with the process benefits of interpersonal age and gender similarity playing an amplifying role. Contrary to their expectations, the authors did not observe direct interpersonal similarity effects. Their findings shed light on some of the very early decision processes that underlie an entrepreneur's network search and thus are critical to network formation. © The Author(s) 2012.