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Comparative social capital: Networks of entrepreneurs and investors in China and Russia

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  • Bat Batjargal
  • Bat Batjargal

Abstract

Most studies on entrepreneurs??? networks incorporate social capital and networks as independent variables that affect entrepreneurs??? actions and its outcomes. By contrast, this article examines social capital of the Chinese and Russian entrepreneurs and venture capitalists as dependent variables, and it examines entrepreneurs??? social capital from the perspectives of institutional theory and cultural theory. The empirical data are composed of structured telephone interviews with 159 software entrepreneurs, and the data of 124 venture capital decisions in Beijing and Moscow. The study found that social networks of the Chinese entrepreneurs are smaller in size, denser in structure, and more homogeneous in composition compared to networks of the Russian entrepreneurs due to the institutional and cultural differences between the two countries. Furthermore, the study revealed that dyadic (two-person) ties are stronger and interpersonal trust is greater in China than in Russia. The research and practical implications are discussed.

Suggested Citation

  • Bat Batjargal & Bat Batjargal, 2005. "Comparative social capital: Networks of entrepreneurs and investors in China and Russia," William Davidson Institute Working Papers Series wp783, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2005-783
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    References listed on IDEAS

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    9. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Social capital; entrepreneurs; venture capitalists; China and Russia.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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