A start-up embedding in three business network settings – A matter of resource combining

Abstract

This paper focuses on how newly established technology-based start-up companies become part of the business landscape. In more detail, the aim of the paper is to analyse how a start-up becomes embedded through its networking behaviours in a business network. To approach this phenomenon, the theoretical frame of reference is based on the industrial network approach to industrial markets separating developing, producing and using settings. The business network settings are combined with networking behaviours consisting of both strong and weak ties. Importantly, for a start-up to become embedded through networking, resources of the start-up need to be combined with resources in the three business network settings. The paper relies on a case study methodology focusing on a start-up, founded at a technical university in Sweden, and its networking behaviours. The paper concludes that networking behaviours relying on strong ties are crucial to resource combining. However, the analysis also shows the importance of networking behaviours of weak ties, acquiring information and interaction to sensing new opportunities. The paper ends with managerial implications for start-up managers, pinpointing the need to work with both strong and weak ties as a platform to eventually become embedded in business networks.