This study investigates when indirect ties, in which a referrer appears between an entrepreneur and a resource owner, can enhance the likelihood of resource acquisitions for starting a new venture. The authors argue that when either resource owners or referrers possess a greater level of prior...

The entrepreneurship literature suggests that network ties are useful in mitigating the problem of information asymmetry faced by entrepreneurs when acquiring resources at the early stage of venture creation. We introduce prior knowledge of resource owners as an inverse measure of information...