Networks in Entrepreneurship

The value of networks as integral part of the explanation of entrepreneurial success is widely acknowledged. However, the network perspective lacks specification of the various dimensions of a network and their impact on the early development of a venture. We make a distinction between a Schumpeterian start-up pursuing a radical innovation and a Kirznerian venture on basis of an incremental innovation. This distinction is introduced as a contingency in the way networks contribute to the ability of the entrepreneur to discover opportunities, to get resources, and to gain legitimacy. In this explorative study three cases on high technology firms in The Netherlands provide empirical material to develop a number of propositions on the network effect on the survival or performance of start-ups.