Family Ties in Entrepreneurs’ Social Networks and New Venture Growth

Author:

Arregle Jean–Luc1,Batjargal Bat2,Hitt Michael A.3,Webb Justin W.4,Miller Toyah5,Tsui Anne S.6

Affiliation:

1. EM Lyon Business School, Ecully, France.

2. Harvard University, Davis Center, Cambridge, MA, USA, and is a visiting professor in entrepreneurship at Peking University, Guanghua School of Management, Beijing, China at the time of writing this paper. His present affiliation since 2014, Nottingham University Business School China, Ningbo, China [Correction added on 27 March 2015, after first online publication: present affiliation and contact has been updated].

3. Mays Business School, Texas A&M University, College Station, TX, USA.

4. School of Entrepreneurship, Oklahoma State University, Stillwater, OK, USA.

5. Kelley School of Business, Indiana University, Bloomington, IN, USA.

6. International Management at W.P. Carey School of Business, Arizona State University, Tempe, AZ, USA, and is Special Appointment Professor at Peking University, Guanghua School of Management, Beijing, China.

Abstract

Family ties are an important conduit of resources for entrepreneurs, but both positive and negative outcomes can arise. Building upon a family embeddedness perspective, we develop hypotheses about curvilinear relationships between the proportion of family ties in entrepreneurs’ networks and venture growth. We test them on entrepreneurs from China, France, Russia, and the United States. These effects appear to be related to the type of entrepreneurs’ social network (business advice, emotional support, and business resources). Our results confirm effects specific to each network: an inverted U–shape for advice and emotional support networks but a U–shape for the business resource network, measuring what proportion of kin in each entrepreneurial network type is valuable to or, conversely, undermines new venture growth.

Publisher

SAGE Publications

Subject

Economics and Econometrics,Business and International Management

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