DYNAMIC ENTREPRENEURIAL NETWORKS: AN INVESTIGATION OF ENTREPRENEURS, NEW VENTURES AND THEIR NETWORKS

Entrepreneurs need resources to organize new venture offerings into marketplace-acceptable forms. Entrepreneurs use others' assistance via networks to obtain these resources. Research indicates that firms face resource dependencies, that likely change over time, where they must respond to those controlling resources. Although some work has investigated implications of new ventures' networks at one time period, little work has investigated the dynamic nature and associated outcomes of networks as they change due to different resource requirements as the venture develops. This research examines the dynamic nature of networks, due different resource requirements over time, and how these changes impact entrepreneurial outcomes via interactions with entrepreneurs' existing networks. In order to account for the dynamic nature of entrepreneurial new ventures and their networks of resource providers, a model is presented that investigates antecedents to subsequent entrepreneurial network characteristics. The model also anticipates changes eminent to the founder as a consequence of interactions with their networks due to experiences associated with the new venture development process. This work relies on network theory integrated with resource dependence theory arguments, work that examines founder attributes as associated with entrepreneurial outcomes and research that investigates the stages of new venture development. Predictions developed from the model were tested in two studies. The first study utilized the Panel Study of Entrepreneurial Dynamics, an existing panel database containing information about nascent entrepreneurs, as its data source to test predictions examining the dynamics of entrepreneurs' networks across two time frames. The second study used a cross-sectional mass mail survey design to investigate all of the model's predictions on a random sample of newly incorporated firms in the state of Florida. The results of the studies provided support for about one third of the predictions and there were a few contrasting findings across studies. Overall, the results of the studies suggest that some conceptualizations presented in the theoretical model should be reevaluated and that the applicability of some constructs when studying firms in the organizing stages of development should be reconsidered.