Complementary effects of network range and tie strength in enhancing transnational venture performance

Abstract

AbstractWe examine the complementary effects of network range and tie strength on the performance of ventures in the context of the transnational entrepreneur (TE). Network range facilitates access to a broad set of knowledge and resources; however these resources may be activated only in the presence of strong ties. Alternatively, a network heavy in strong ties provides reliable connections, but a lack of range can lead to network closure. Using a sample of 452 TE ventures, we find that tie strength enhances venture performance, but network range does not have a significant effect. Furthermore, taken together, tie strength and network range significantly enhance TE venture performance. Supermodularity and linear restriction tests indicate asymmetric complementarity between network range and tie strength. Tie strength is a critical input and network range plays a supporting role in a TE's venture performance. Copyright © 2011 Strategic Management Society.