An Analytical Investigation of The Entrepreneur's Ability to Acquire Valued Resources From Others

Abstract

This study develops a multi-level theoretical framework and analytical model to explore how entrepreneurs can allocate their available networking time and energy to achieve two key aims: extending their reach to valuable resources and facilitating resource acquisition. Our framework and model, which treat both aims jointly, are based on a synthesis of the brokerage, cohesion, and embeddedness literatures. In doing so, we: i) discuss the associated trade-off that entrepreneurs face whenever they pursue these two aims; ii) highlight the central role two types of embeddedness play in resolving the trade-off; and iii) offer guidance to entrepreneurs regarding how to decide whether to relationally or structurally embed a particular dyadic relationship. The results of our analytical model show that, by structurally embedding some rather than trying to relationally embed all ties, entrepreneurs can often better balance their dual aim of increasing reach to valuable resources and ensuring their acquisition. The r...