Faithin Omaha eBook Collection

Download or read book Three Essays on Social Networks and Entrepreneurship written by Jason Greenberg (Ph. D.) and published by . This book was released on 2009 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: (cont.) Empirical analyses of representative data of individuals in the process of founding a business are employed to demonstrate the value of this framework. In one of the most influential arguments in organization sociology Arthur Stinchcombe argued that new as opposed to old organizations are more likely to die because of a "liability of newness." The thesis writ large has received empirical support. Stinchcombe actually identified four mechanisms that individually and collectively compose the liability. One of the liabilities he identified specifically argued that new organizations are more likely to die because they must rely upon relations among strangers. On the other hand, research suggests that strangers are particularly well suited to act as bridging ties, which afford advantages in the startup process by offering access to information about market opportunities, novel resources, and information. This social structural mechanism is consistent with Schumpeter's view of entrepreneurship as novel combination. This third essay assesses whether including strangers on a founding team or as employees is net positive or negative.