A Taxonomy of Social-Network-Utilization Strategies for Emerging High-Technology Firms

Abstract

Lack of network transparency limits entrepreneurs’ effective utilization of their networks for resource acquisition. Virtual platforms (e.g., SNS-Social Networking Sites) have the potential to leverage entrepreneurial networks. The purpose of this study is to understand why and how technology-based entrepreneurs use social media to effectively access resources and, in turn, shed light on how they overcome network transparency in the early stages of their new venture formation process. Through in-depth interviews with the (co-) founders of 18 technology-based start-ups, this work reports a four-way taxonomy of strategic use of SNS. This research provides new theoretical insights for the technoentrepreneurship literature and reports practical insights for entrepreneurs on how to use social media effectively. Furthermore, this work is a guide for future research looking at digital literacy in entrepreneurship.