Social capital and individual entrepreneurial orientation: innovativeness, proactivity, and risk-taking in an emerging economy

Abstract

PurposeThis paper investigates if and how entrepreneurs' social capital influences their individual entrepreneurial orientation attributes (innovativeness, proactiveness, and risk-taking).Design/methodology/approachThe research method adopted is an exploratory multiple case study. The case chosen is that of an emerging and under-examined entrepreneur, the religious entrepreneur. The study investigates 20 pastors responsible for small enterprise-churches in Brazil.FindingsSocial capital influences individual entrepreneurial orientation, being characterized by a relative paradox. The networks must be dense enough to stimulate entrepreneurs' individual entrepreneurial orientation but not be so dense as to harm innovativeness, proactivity and risk-taking. Further, data show that individual entrepreneurial orientation influences social capital.Research limitations/implicationsOne limitation relates to the semi-structured interviews' restricted use. A second limitation is associated with the recognition of churches only as productive enterprises.Practical implicationsThis article suggests the significance of incorporating both themes in entrepreneurial education and training programs. It also stresses the appropriateness of religious entrepreneurship as an empirical research field for business scholars.Originality/valueThe contributions are fivefold. First, the authors build exploratory theoretical propositions on the influence of social capital on individual entrepreneurial orientation. Second, they highlight the significance of dense networks for individual entrepreneurial orientation, expanding the literature that supports the relevance of cohesive networks solely to the construct's organizational dimension. Third, the authors suggest that a relative paradox may characterize individual entrepreneurial orientation. Fourth, the authors suggest the existence of recursion between both constructs. Finally, this study is one of the first to examine social capital and individual entrepreneurial orientation, considering innovativeness, proactivity, and risk-taking, which represents a neglected field in benchmarking studies.