Build Network before use it: Entrepreneur Network Capability and Opportunity Discovery

Abstract

We developed a model of entrepreneur network capability concerning the agent role of nascent entrepreneurs in developing and managing social network, which is further related to entrepreneurial opportunity discovery. With a process perspective, we proposed entrepreneur network capability as a four-dimension construct including network orientation, network building, network maintenance and network coordination. A sample of 212 nascent Chinese entrepreneurs collected at two time points supported the positive relationship between network capability and opportunity discovery after controlling for entrepreneur prior knowledge, cognitive bias and political skills. Further, the relationship was found to be mediated by enhanced network configuration (i.e. network centrality) and moderated by entrepreneurs’ power distance orientation (whether they are willing to accept the unequal distribution of social status). Entrepreneur network capability exerted stronger effect on opportunity discovery for low power distance entrepreneurs. Implications of our findings were discussed.