Homophily and Resource-Seeking Behavior in New Venture Network Formation

We draw upon resource-based and sociological theories to shed light on nascent entrepreneurs' network development. Employing a unique empirical dataset of nascent entrepreneurs at the earliest stages of venture creation, we examine resource search and homophily as two antecedents of entrepreneurs' value attributions in network development. Our results confirm that resource multiplexity increases perceived relationship value. Contrary to our prediction, however, homophily does not have a significant direct effect; instead, homophily amplifies the positive effects of resource multiplexity. These results suggest a view of entrepreneurial network development in which instrumental resource search is the primary driver, with interpersonal similarity playing a moderating role