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Measuring Embeddedness and Its Effect on New Venture Creation—A Study of Farm Diversification

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  • Richard Ferguson
  • Helena Hansson

Abstract

Social embeddedness has been found to influence the development of new ventures, providing a basis for the trust needed for economic exchange. This study takes a novel approach to measuring embeddedness, focusing on entrepreneurs' perceived value of advice from various network partners, and shows that different types of partners exercise different influences. Analysis of a survey of 670 farm businesses shows varied embeddedness in professional and social networks, where stronger embeddedness in social networks is more associated with the development of diversified enterprises, whereas stronger professional networks is more associated with a lower incidence of such development. Copyright © 2014 John Wiley & Sons, Ltd.

Suggested Citation

  • Richard Ferguson & Helena Hansson, 2015. "Measuring Embeddedness and Its Effect on New Venture Creation—A Study of Farm Diversification," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 36(5), pages 314-325, July.
    • Handle: RePEc:wly:mgtdec:v:36:y:2015:i:5:p:314-325
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    Cited by:

    1. Sarah Fitz-Koch & Mattias Nordqvist & Sara Carter & Erik Hunter, 2018. "Entrepreneurship in the Agricultural Sector: A Literature Review and Future Research Opportunities," Entrepreneurship Theory and Practice, , vol. 42(1), pages 129-166, January.
    2. Ron Methorst & Dirk Roep & Frans Verhees & Jos Verstegen, 2016. "Drivers for differences in dairy farmers’ perceptions of farm development strategies in an area with nature and landscape as protected public goods," Local Economy, London South Bank University, vol. 31(5), pages 554-571, August.
    3. Yang, Chaolin & Yan, Jingdong & He, Xiaodan & Tian, Shiqi, 2023. "What determines the survival of farmer entrepreneurship: Micro-evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 334-348.
    4. Viktoria Graskemper & Xiaohua Yu & Jan‐Henning Feil, 2021. "Analyzing strategic entrepreneurial choices in agriculture—Empirical evidence from Germany," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 569-589, July.

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