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Social networks and a new venture's innovative capability: the role of trust within entrepreneurial teams
Author(s) -
Chen MingHuei,
Wang MingChao
Publication year - 2008
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2008.00515.x
Subject(s) - moderation , business , knowledge management , social venture capital , social network (sociolinguistics) , corporate venture capital , venture capital , marketing , psychology , computer science , social media , social psychology , finance , world wide web
This paper examines the effects of social networks and trust on a new venture's innovative capability. The concept of social networks is studied as the configuration of internal and external social networks for entrepreneurial team members. This study collected information about 112 technology‐based entrepreneurial teams from the 65 research‐based incubators in Taiwan. The results indicate that both internal and external social networks have marginally positive impacts on a new venture's innovative capability, and trust within the entrepreneurial teams is found to be as important a moderator for the relationship between external social networks and innovative capability. Moreover, results reveal that a higher level of trust between entrepreneurial team members can reduce the external social networks spanning the boundaries of the new venture and therefore may cause a ‘not invented here’ syndrome which will reduce its innovative capability.