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Finding the Pot of Gold:Leveraging Social Capital in International New Ventures

Author

Listed:
  • Aard J. Groen
  • Joris Heuven
  • Paul Kirwan
  • Tiago Ratinho

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Peter van Der Sijde

Abstract

The authors seek to advance the understanding of social capital in the acquisition of other types of capital in the early stages of international new ventures (INVs). International technology-based new ventures are important for the growth of an abundant economy, yet little is known about how these firms utilize social capital to develop the resources required to initiate these firms. Here we add to the literature by first defining INVs as firms that establish foreign operations, not just foreign sales. We then empirically demonstrate that social capital acquisition and use affects the development of the resources (capital) needed for the INV development strategic, financial, and managerial. Our results demonstrate that the development of social capital precedes other forms of capital acquisition for INVs.

Suggested Citation

  • Aard J. Groen & Joris Heuven & Paul Kirwan & Tiago Ratinho & Peter van Der Sijde, 2019. "Finding the Pot of Gold:Leveraging Social Capital in International New Ventures," Post-Print hal-01916397, HAL.
    • Handle: RePEc:hal:journl:hal-01916397
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