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Family Ties in Entrepreneurs’ Social Networks and New Venture Growth

Jean-Luc Arregle1; Bat Batjargal2; Michael A. Hitt3; Justin W. Webb4; Toyah Miller5; Anne S. Tsui6

1 EM LYON Business School Écully 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 · 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.

Entrepreneurship Theory and Practice 2015

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.

DOI
10.1111/etap.12044
Volume
39 (2)
Pages
313-344
Language
en
Export
BibTeX
Sources
crossref