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 knowledge about a venture’s technology or product, information asymmetry problems arising from weak component ties decline, enabling resource owners to evaluate the venture better. On the basis of survey data from 378 high-tech entrepreneurs, the analysis shows that resource owners’ prior knowledge, but not referrers’, compensates for limited information in weak component ties better than in strong component ties.
Ahuja, G.2000. Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45: 425-455.
2.
Aiken, L.S., & West, S.G.1991. Multiple regression: Testing and interpreting interactions . Newbury Park, CA: Sage.
3.
Akerlof, G.A.1970. The market for "lemons": Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84: 488-500.
4.
Alba, J., & Hutchinson, J.W.1987. Dimensions of consumer expertise . Journal of Consumer Research, 13: 411-454.
5.
Aldrich, H., & Auster, E.1986. Even dwarfs stared small: Liabilities of age and size and their strategic implications. Research in Organizational Behavior, 8: 165-198.
6.
Ancona, D.G., & Caldwell, D.F.1992. Bridging the boundary: External activity and performance in organizational teams. Administrative Science Quarterly, 37: 634-655.
7.
Arbuckle, J.L.2005. AMOS 4.01. Chicago: SPSS.
8.
Ardichvilia, A., Cardozo, R., & Ray, S.2003. A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing, 18: 105-123.
9.
Armstrong, J.S., & Overton, T.S.1977. Estimating non-response bias in mail surveys. Journal of Marketing Research, 14: 396-400.
10.
Batjargal, B.N., & Liu, M.2004. Entrepreneurs’ access to private equity in china: The role of social capital. Organization Science, 15(2): 159-172.
11.
Bernard H.R., Killworth, P.D., & Sailer, L.1982. Informant accuracy in social network data V. Social Science Research, 11: 30-66.
12.
BIA2002. Annual report on Beijing high-tech business incubator industry. Beijing , China: Beijing Business Incubation Association.
13.
BIA2003. Annual report on Beijing high-tech business incubator industry. Beijing , China: Beijing Business Incubation Association.
14.
Bian, Y.1997. Bringing strong ties back in: Indirect ties, network bridges, and job searches in China. American Sociological Review, 62: 366-385.
15.
Bian, Y., & Ang, S.1997. Guanxi networks and job mobility in China and Singapore . Social Forces, 75: 981-1005.
16.
Brush, C.G., Greene, P.G., & Hart, M.M.2001. From initial idea to unique advantage: The entrepreneurial challenge of constructing a resource base. Academy of Management Executive, 15(1): 64-78.
17.
Burt, R.1987. Social contagion and innovation: Cohesion versus structural equivalence. American Journal of Sociology, 92: 1287-1335.
18.
Burt, R.1997. The contingent value of social capital. Administrative Science Quarterly, 42: 339-365.
19.
Burt, R. & Knez, M.1995. Kinds of third-party effects on trust. Rationality and Society, 7: 255-292.
20.
Bygrave, W.D.1987. Syndicated investments by venture capital firms: A networking perspective. Journal of Business Venturing, 2: 139-154.
21.
Carlson, D.S., & Kacmar, K.M.2000. Work-family conflict in the organization: Do life role values make a difference? Journal of Management, 26: 1031-1054.
22.
Cohen, J., & Cohen, P.1983. Applied multiple regression: Correlation analysis for the behavioural sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum.
23.
Cohen, W., & Levinthal, D.1990. Adoptive capacity: A new perspective on learning and innovation . Administrative Science Quarterly, 35: 128-152.
24.
Cooper, A.C., Gimeno-Gascon, F.J., & Woo, C.Y.1994. Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing , 9: 371-395.
25.
Davidsson, P., & Honig, B.2003. The role of social and human capital among nascent entrepreneurs . Journal of Business Venturing, 18: 301-331.
26.
Dahlstrom, R., & Ingram, R.2003. Social networks and the adverse selection problem in agency relationships. Journal of Business Research, 56: 767-775.
27.
Dixon, R.1991. Venture capitalists and the appraisal of investments . OMEGA International Journal of Management Science, 19(5): 333-344.
28.
Dooley, R.S., & Fryxell, G.E.1999. Attaining decision quality and commitment from dissent: The moderating effects of loyalty and competence in strategic decision-making teams. Academy of Management Journal, 42: 389-402.
29.
Echambadi, R., & Hess, G.D.2007. Mean-centering does not alleviate collinearity problems in moderated multiple regression models. Marketing Science , 25: 438-445.
30.
Eisenhardt, K.M., & Schoonhoven, C.B.1990. Organizational growth: Linking founding team, strategy, environment, and growth among U.S. semiconductor ventures, 1978-1988. Administrative Science Quarterly, 35: 504-529.
31.
Elangovan, A.R., & Xie, J.L.1999. Effects of perceived power of supervisor on subordinate stress and motivation: The moderating role of subordinate characteristics . Journal of Organizational Behavior, 20: 359-373.
32.
Freeman, L.C., Romney, A.K., & Freeman, S.C.1987. Cognitive structure and informant accuracy. American Anthropologist, 89: 310-325.
33.
George, J.M., & Zhou, J.2007. Dual tuning in a supportive context: Joint contributions of positive mood, negative mood, and supervisory behaviours to employee creativity . Academy of Management Journal, 50: 605-622.
34.
Golden, B.R.1992. The past is the past-Or is it? The use of retrospective accounts as indicators of past strategy. Academy of Management Journal, 35: 848-860.
35.
Granovetter, M.1973. The strength of weak ties. American Journal of Sociology, 78: 1360-1380.
36.
Gujarati, D.N.2002. Basic econometrics (4th ed.). New York: McGraw-Hill, Irwin.
37.
Gulati, R.1995. Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38: 85-112.
38.
Guthrie, D.1998, June. The declining significance of guanxi in China’s economic transition. China Quarterly, 154: 254-282.
39.
Hoang, H., & Antoncic, B.2003. Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18: 165-187.
Kirzner, I.1997. Entrepreneurial discovery and the competitive market process: An Austrian approach. Journal of Economic Literature , 35: 60-85.
44.
Larson, A.1992. Network dyads in entrepreneurial settings: A study of the governance of exchange relationships. Administrative Science Quarterly, 37: 76-104.
45.
Lee, C., Lee, K., & Pennings, J.2001. Internal capabilities, external networks, and performance: A study on technology-based ventures. Strategic Management Journal, 22: 615-640.
46.
Li, H., & Atuahene-Gima, K.2001. Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44: 1123-1134.
47.
Lin, N.1999. Social networks and status attainment. Annual Review of Sociology, 25: 467-487.
48.
MacMillan, I.C., Zemann, L., & Subbanarasimha, P.1987. Criteria distinguishing successful ventures in the venture screening process. Journal of Business Venturing, 2: 123-137.
49.
Marsden, P.V.1990. Network data and measurement. Annual Review of Sociology, 16: 535-563.
50.
Marsden, P.V., & Campbell, K.E.1984. Measuring tie strength . Social Forces, 62: 428-501.
51.
Miller, C., Cardinal, L., & Glick, W.1997. Retrospective reports in organizational research: A reexamination of recent evidence. Academy of Management Journal, 40: 189-204.
52.
Neter, J., Wasserman, W., & Kutner, M.H.1990. Applied linear statistical models (3rd ed.). Homewood, IL: Irwin.
53.
Pfeffer, J., & Salancik, G.1978. The external control of organizations: A resource dependence perspective. New York: Harper and Row.
54.
Podsakoff, P.M., MacKenzie, S.B., Lee, J., & Podsakoff, N.P.2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies . Journal of Applied Psychology, 88: 879-903.
55.
Porter, M.E.1980. Competitive strategy. New York : Free Press.
56.
Roberts, E.1991. Entrepreneurs in high technology: Lessons from MIT and beyond. New York: Oxford University Press.
57.
Rogers, E.M.1995. Diffusion of innovations (4th ed.). New York: Free Press.
58.
Rothaermel, F.T., & Deeds, D.L.2004. Exploration and exploitation alliances in biotechnology: A system of new product development. Strategic Management Journal, 25: 201-221.
59.
Shan, W., Walker, G., & Kogut, B.1994. Interfirm cooperation and startup innovation in the biotechnology industry. Strategic Management Journal, 15: 387-394.
60.
Shane, S.2000. Prior knowledge and the discovery of entrepreneurial opportunities . Organization Science, 46: 448-469.
61.
Shane, S., & Cable, D.2002. Network ties, reputation, and the financing of new ventures . Management Science, 48: 364-381.
62.
Shane, S., & Stuart, T.2002. Organizational endowments and the performance of university start-ups. Management Science, 48: 154-170.
63.
Shepherd D.A., Douglas, E.J., & Shanley, M.2000. New venture survival-Ignorance, external shocks, and risk reduction strategies. Journal of Business Venturing , 15: 393-410.
64.
Starr, J.A., & MacMillan, I.C.1990. Resource cooptation via social contracting: Resource acquisition strategies for new ventures. Strategic Management Journal, 11: 779-792.
65.
Stinchcombe, A.L.1965. Social structure and organizations. In J. G. March (Ed.), Handbook of organizations (pp. 142-193). Chicago: Rand McNally .
66.
Stuart, T.E., Hoang, H., & Hybels, R.C.1999. Interorganizational endorsements and the performance of entrepreneurial ventures. Administrative Science Quarterly , 44: 315-349.
67.
Tsai, W., & Ghoshal, S.1998. Social capital and value creation: The role of intrafirm networks. Academy of Management Journal, 41: 464-476.
68.
Tyebjee, T.T., & Bruno, A.V.1984. A model of venture capitalist investment activity . Management Science, 30: 1051-1066.
69.
Uzzi, B.1996. The sources and consequences of embeddedness for the economic performance of organizations: The network effect. American Sociological Review, 61: 674-498.
70.
Uzzi, B., & Lancaster, R.2003. Relational embeddedness and learning: The case of bank loan managers and their clients. Management Science , 49: 383-399.
71.
Venkataraman, S.1997. The distinctive domain of entrepreneurship research. Advances in Entrepreneurship Research, Firm Emergence and Growth, 3: 119-138.
Wiklund, J., & Shepherd, D.2005. Entrepreneurial orientation and small business performance: A configuration approach. Journal of Business Venturing, 20: 71-91.
74.
Williams, L.J., Cote, J.A., & Buckley, M.R.1989. Lack of method variance in self-reported affect and perceptions at work: Reality or artifact? Journal of Applied Psychology , 74: 462-468.
75.
Wilson, D.T.1995. An integrated model of buyer-seller relationships . Journal of the Academy of Marketing Science, 23: 335-345.
76.
Wong, P.K.2006. The remaking of Singapore’s high tech enterprise ecosystem. In H. Rowen et al. (eds.), Making IT: The rise of Asia in high tech (pp. 123-174). Stanford, CA: Stanford University Press.
77.
Wood, S.L., & Lynch, J.G.2002. Prior knowledge and complacency in new product learning . Journal of Consumer Research, 29: 416-426.
78.
Xin, K., & Pearce, J.L.1996. Guanxi: Connections as substitutes for formal institutional support. Academy of Management Journal, 39: 1641-1658.
79.
Yang, M.M.1994. Gifts, favors, and banquets: The art of social relationships in China. Ithaca, NY: Cornell University Press.
80.
Zahra, S.A.1996. Technology strategy and new venture performance: A study of corporate-sponsored and independent biotechnology ventures. Journal of Business Venturing, 11: 289-321.
81.
Zhao, L., & Adam, J.D.1995. Networking and growth of young technology-intensive ventures in China. Journal of Business Venturing, 10: 349-370.
82.
Zucker, L.1986. Production of trust: Institutional sources of economic structure. Research in Organizational Behavior, 8: 53-101.
