IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v31y2007i2p139-159.html
   My bibliography  Save this article

The Impact of Virtual Embeddedness on New Venture Survival: Overcoming the Liabilities of Newness1

Author

Listed:
  • Eric A. Morse
  • Sally W. Fowler
  • Thomas B. Lawrence

Abstract

In this article, we examine the impact of virtual embeddedness—the establishment of interorganizational connections through the use of electronic technologies—on the likelihood of new venture survival. We explore the effects of recent technological and social changes on traditional conceptions of the liabilities of newness. We argue that virtual embeddedness positively affects new venture survival by decreasing the liabilities of newness associated with a new venture's need to create and manage new roles and systems, lack of extant trust relationships, lack of social capital, and lack of economic capital. This argument has important implications for both the study and management of contemporary new ventures.

Suggested Citation

  • Eric A. Morse & Sally W. Fowler & Thomas B. Lawrence, 2007. "The Impact of Virtual Embeddedness on New Venture Survival: Overcoming the Liabilities of Newness1," Entrepreneurship Theory and Practice, , vol. 31(2), pages 139-159, March.
    • Handle: RePEc:sae:entthe:v:31:y:2007:i:2:p:139-159
    DOI: 10.1111/j.1540-6520.2007.00167.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2007.00167.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2007.00167.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    2. Soh, Pek-Hooi, 2003. "The role of networking alliances in information acquisition and its implications for new product performance," Journal of Business Venturing, Elsevier, vol. 18(6), pages 727-744, November.
    3. Jung Hoon Derick Sohn, 1994. "Social Knowledge as a Control System: A Proposition and Evidence from the Japanese FDI behavior," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(2), pages 295-324, June.
    4. Kotha, Suresh, 1998. "Competing on the Internet:: The case of Amazon.com," European Management Journal, Elsevier, vol. 16(2), pages 212-222, April.
    5. Andrea Larson & Jennifer A. Starr, 1993. "A Network Model of Organization Formation," Entrepreneurship Theory and Practice, , vol. 17(2), pages 5-15, January.
    6. Sim B. Sitkin & Nancy L. Roth, 1993. "Explaining the Limited Effectiveness of Legalistic “Remedies” for Trust/Distrust," Organization Science, INFORMS, vol. 4(3), pages 367-392, August.
    7. Arent Greve & Janet W. Salaff, 2003. "Social Networks and Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 28(1), pages 1-22, January.
    8. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    9. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    10. Shepherd, Dean A. & Douglas, Evan J. & Shanley, Mark, 2000. "New venture survival: Ignorance, external shocks, and risk reduction strategies," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 393-410.
    11. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    12. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    13. Richard A. Bettis & Michael A. Hitt, 1995. "The new competitive landscape," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 7-19.
    14. Wenpin Tsai, 2000. "Social capital, strategic relatedness and the formation of intraorganizational linkages," Strategic Management Journal, Wiley Blackwell, vol. 21(9), pages 925-939, September.
    15. Jack, Sarah L. & Anderson, Alistair R., 2002. "The effects of embeddedness on the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 17(5), pages 467-487, September.
    16. Benjamin M Oviatt & Patricia Phillips McDougall, 1994. "Toward a Theory of International New ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 45-64, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jack, Sarah L., 2010. "Approaches to studying networks: Implications and outcomes," Journal of Business Venturing, Elsevier, vol. 25(1), pages 120-137, January.
    2. Lavlu Mozumdar & Geoffrey Hagelaar & Valentina C. Materia & S. W. F. Omta & Mohammad Amirul Islam & Gerben Velde, 2019. "Embeddedness or Over-Embeddedness? Women Entrepreneurs’ Networks and Their Influence on Business Performance," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(5), pages 1449-1469, December.
    3. Susanna Slotte–Kock & Nicole Coviello, 2010. "Entrepreneurship Research on Network Processes: A Review and Ways Forward," Entrepreneurship Theory and Practice, , vol. 34(1), pages 31-57, January.
    4. Jayawarna, Dilani & Jones, Oswald & Marlow, Susan, 2015. "The influence of gender upon social networks and bootstrapping behaviours," Scandinavian Journal of Management, Elsevier, vol. 31(3), pages 316-329.
    5. Jing Zhang & Vangelis Souitaris & Pek–hooi Soh & Poh–kam Wong, 2008. "A Contingent Model of Network Utilization in Early Financing of Technology Ventures," Entrepreneurship Theory and Practice, , vol. 32(4), pages 593-613, July.
    6. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    7. Jean–Luc Arregle & Bat Batjargal & Michael A. Hitt & Justin W. Webb & Toyah Miller & Anne S. Tsui, 2015. "Family Ties in Entrepreneurs’ Social Networks and New Venture Growth," Entrepreneurship Theory and Practice, , vol. 39(2), pages 313-344, March.
    8. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    9. Thommie Burström & Jussi Harri & Timothy. L. Wilson, 2018. "Nascent Entrepreneurs Managing in Networks: Equivocality, Multiplexity and Tie Formation," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 26(01), pages 51-83, March.
    10. Thorsten Semrau & Arndt Werner, 2014. "How Exactly Do Network Relationships Pay Off? The Effects of Network Size and Relationship Quality on Access to Start–Up Resources," Entrepreneurship Theory and Practice, , vol. 38(3), pages 501-525, May.
    11. Soetanto, Danny, 2019. "Examining change in entrepreneurial networks: Using visualisation as an alternative approach," European Management Journal, Elsevier, vol. 37(2), pages 139-150.
    12. Salih Zeki Ozdemir & Peter Moran & Xing Zhong & Martin J. Bliemel, 2016. "Reaching and Acquiring Valuable Resources: The Entrepreneur's Use of Brokerage, Cohesion, and Embeddedness," Entrepreneurship Theory and Practice, , vol. 40(1), pages 49-79, January.
    13. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    14. Milanov, Hana & Fernhaber, Stephanie A., 2009. "The impact of early imprinting on the evolution of new venture networks," Journal of Business Venturing, Elsevier, vol. 24(1), pages 46-61, January.
    15. Vershinina, Natalia & Rodgers, Peter & Tarba, Shlomo & Khan, Zaheer & Stokes, Peter, 2020. "Gaining legitimacy through proactive stakeholder management: The experiences of high-tech women entrepreneurs in Russia," Journal of Business Research, Elsevier, vol. 119(C), pages 111-121.
    16. Elvin Afandi & Majid Kermani & Fuad Mammadov, 2017. "Social capital and entrepreneurial process," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 685-716, September.
    17. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    18. Hans Löfsten & Anders Isaksson & Heikki Rannikko, 2023. "Entrepreneurial networks, geographical proximity, and their relationship to firm growth: a study of 241 small high-tech firms," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2280-2306, December.
    19. Julia Keidel & Peter M. Bican & Frederik J. Riar, 2021. "Influential Factors of Network Changes: Dynamic Network Ties and Sustainable Startup Embeddedness," Sustainability, MDPI, vol. 13(11), pages 1-20, May.
    20. Christophe Estay & Manzoom Akhter, 2019. "Le développement international des entreprises nées globales : l'importance du réseau social," Post-Print hal-02872778, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:31:y:2007:i:2:p:139-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.