Entrepreneurial Social Capital Unplugged

Abstract

First, we develop a macro level explanation for how changes in social capital occur. Second, we apply a dynamic approach to social capital by examining on a more micro level the activities which are involved with and contribute to the increase or decrease in social capital in, largely dyadic, relationships within entrepreneurial networks.Third, we propose a more robust notion of social capital.We found that five key relationship-driving forces were involved in developing social capital.The research findings suggested that entrepreneurs seem to have a strikingly similar modus operandi when it comes to creating and destroying their network social capital. Activities such as the reciprocal trading of favours, socializing, joint problem-solving, delivering to expectation and using transparent communications were crucial to both. Finally, we discovered that entrepreneurs managed their network relationships heuristically relying on social capital, particularly by leveraging the productive ambiguity of this crucial [net]work asset.