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Linking network ties to entrepreneurial opportunity discovery and exploitation: the role of affective and cognitive trust

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  • Shenggang Ren

    (Business School of Central South University)

  • Rui Shu

    (Shanghai Jiao Tong University)

  • Yongchuan Bao

    (University of Alabama Huntsville)

  • Xiaohong Chen

    (Business School of Central South University)

Abstract

Entrepreneurial opportunity discovery (EODI) and opportunity exploitation (EOEX) are two critical entrepreneurial activities which heavily depend on external social network. The present study provided a nuanced investigation on the roles of affective and cognitive trust in the relationship between network ties (strong and weak ties) and opportunity discovery and exploitation. We examined the hypothesized relationships using longitudinal data collected from a sample of 207 nascent entrepreneurs in China. Our results showed that affective trust mediated the positive effects of network ties on EODI and EOEX. Further, cognitive trust moderated their relationships, that is, high level of cognitive trust enhance the positive relationship between weak ties and EODI as well as the positive relationship between strong ties and EOEX. Theoretical and practical implications are discussed.

Suggested Citation

  • Shenggang Ren & Rui Shu & Yongchuan Bao & Xiaohong Chen, 2016. "Linking network ties to entrepreneurial opportunity discovery and exploitation: the role of affective and cognitive trust," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 465-485, June.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:2:d:10.1007_s11365-014-0350-3
    DOI: 10.1007/s11365-014-0350-3
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