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Mitigating Moral Hazard in Entrepreneurial Networks: Examining Structural and Relational Social Capital in East Africa

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  • Joshua J. Daspit
  • Rebecca G. Long

Abstract

Entrepreneurial networks and family firm researchers are testing the limits of current understanding by investigating relationships in a variety of non–Western contexts. We extend Khayesi, George, and Antonakis's model of resource accumulation to include the relational dimension of an entrepreneur's social capital network to elaborate more fully entrepreneurial kinship network types. The propensity for moral hazard associated with each network type is explicated, and mechanisms for mitigating the cost/benefit of such dysfunctions are addressed.

Suggested Citation

  • Joshua J. Daspit & Rebecca G. Long, 2014. "Mitigating Moral Hazard in Entrepreneurial Networks: Examining Structural and Relational Social Capital in East Africa," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1343-1350, November.
    • Handle: RePEc:sae:entthe:v:38:y:2014:i:6:p:1343-1350
    DOI: 10.1111/etap.12128
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    References listed on IDEAS

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    10. Jane N. O. Khayesi & Gerard George & John Antonakis, 2014. "Kinship in Entrepreneur Networks: Performance Effects of Resource Assembly in Africa," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1323-1342, November.
    11. Eric Gedajlovic & Benson Honig & Curt B. Moore & G. Tyge Payne & Mike Wright, 2013. "Social Capital and Entrepreneurship: A Schema and Research Agenda," Entrepreneurship Theory and Practice, , vol. 37(3), pages 455-478, May.
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    Cited by:

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    2. Hanqing Fang & James J. Chrisman & Joshua J. Daspit & Kristen Madison, 2022. "Do Nonfamily Managers Enhance Family Firm Performance?," Small Business Economics, Springer, vol. 58(3), pages 1459-1474, March.
    3. Boso, Nathaniel & Danso, Albert & Leonidou, Constantinos & Uddin, Moshfique & Adeola, Ogechi & Hultman, Magnus, 2017. "Does financial resource slack drive sustainability expenditure in developing economy small and medium-sized enterprises?," Journal of Business Research, Elsevier, vol. 80(C), pages 247-256.
    4. Bruno Noisette, 2024. "To Whom Do Business Owner-Managers Feel Responsible? Weighting conflicting social responsibilities in Rwanda," Journal of Business Ethics, Springer, vol. 190(3), pages 531-552, March.
    5. Lin, Tse-Chun & Pursiainen, Vesa, 2022. "Regional social capital and moral hazard in crowdfunding," Journal of Business Venturing, Elsevier, vol. 37(4).
    6. Susumu Cato & Hiroki Nakamura, 2022. "Understanding the Function of a Social Business Ecosystem," Sustainability, MDPI, vol. 14(15), pages 1-12, July.
    7. Busch, Christian & Barkema, Harry, 2022. "Align or perish: Social enterprise network orchestration in Sub-Saharan Africa," Journal of Business Venturing, Elsevier, vol. 37(2).
    8. Decker, Stephanie & Estrin, Saul & Mickiewicz, Tomasz, 2020. "The tangled historical roots of entrepreneurial growth aspirations," LSE Research Online Documents on Economics 102989, London School of Economics and Political Science, LSE Library.
    9. Debicki, Bart J. & Ramírez-Solís, Edgar Rogelio & Baños-Monroy, Verónica Ilián & Gutiérrez-Patrón, Lilia Magali, 2020. "The impact of strategic focus on relational capital: A comparative study of family and non-family firms," Journal of Business Research, Elsevier, vol. 119(C), pages 585-598.
    10. Michael A. Abebe & Yamlaksira S. Getachew & Sarah Kimakwa, 2022. "Entrepreneurs’ Ethnic and Political Identity Alignment as Determinants of Access to Government Support in Africa: A Conceptual Framework," Entrepreneurship Theory and Practice, , vol. 46(2), pages 449-476, March.
    11. Mike Wright & James J. Chrisman & Jess H. Chua & Lloyd P. Steier, 2014. "Family Enterprise and Context," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1247-1260, November.
    12. Schell, Sabrina & Hiepler, Miriam & Moog, Petra, 2018. "It’s all about who you know: The role of social networks in intra-family succession in small and medium-sized firms," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 311-325.
    13. Siying Long & Zhongju Liao, 2023. "Green relational capital, integration capabilities and environmental innovation adoption: The moderating role of normative pressures," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1570-1580, June.
    14. Victoria Antin Yates & James M. Vardaman & James J. Chrisman, 2023. "Social network research in the family business literature: a review and integration," Small Business Economics, Springer, vol. 60(4), pages 1323-1345, April.
    15. James J. Chrisman & Kristen Madison & Taewoo Kim, 2021. "A Dynamic Framework of Noneconomic Goals and Inter-Family Agency Complexities in Multi-Family Firms," Entrepreneurship Theory and Practice, , vol. 45(4), pages 906-930, July.

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