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The Evolutionary Model of Entrepreneurial Firms' Dependence on Networks: Going beyond the start-up stage

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  • Dan Li

    (Kelley School of Business, Indiana University)

  • Manuel Portugal Ferreira

    (ESTG, Instituto Politécnico de Leiria)

Abstract

In this paper, we propose a dynamic model of entrepreneurial firms’ dependence on networks. First we argue that five characteristics of entrepreneurial firms result in their high dependence on networks; these five characteristics include entrepreneurial orientation, central role of the entrepreneur, resource constraints, pursuit of flexibility, and niche market focus. We then examine how entrepreneurial firms’ growth is accompanied by the evolution of these five characteristics leading to a shift in the mode through which entrepreneurial firms construct and deploy their networks. In particular, we examine the composition and the stability of entrepreneurial firms’ networks. This paper contributes to building a more integrative theory of entrepreneurship.

Suggested Citation

  • Dan Li & Manuel Portugal Ferreira, 2006. "The Evolutionary Model of Entrepreneurial Firms' Dependence on Networks: Going beyond the start-up stage," Notas Económicas, Faculty of Economics, University of Coimbra, issue 24, pages 48-63, December.
    • Handle: RePEc:gmf:journl:y:2006:i:24:p:48-63
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    References listed on IDEAS

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    Cited by:

    1. Manuel Portugal Ferreira & Dan Li & Fernando A. Ribeiro Serra, 2008. "Firm Characteristics and Country Institutional Development: Business Relationships with Foreign Firms in Transition Economies," Working Papers 20, globADVANTAGE, Polytechnic Institute of Leiria.
    2. Sefiani, Yassine & Davies, Barry & Bown, Robin & Kite, Neilson, 2016. "The interface of networking and 'wasta' in an Arabic context," MPRA Paper 71889, University Library of Munich, Germany.
    3. Manuel Portugal Ferreira & João Carvalho Santos & Nuno Rosa Reis & Fernando A. Ribeiro Serra, 2010. "Entrepreneurship research: A bibliometric study of the EnANPADs 1997-2008," Working Papers 69, globADVANTAGE, Polytechnic Institute of Leiria.

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    More about this item

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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