Cultural Entrepreneurship: The Impact of Social Networking on Success

Abstract

Because of the complex structures characteristic of the arts sector and creative industries, it is often thought that external network ties of leading managers are critical to the success of their cultural enterprises. Based on research into entrepreneurship and promoters' activity, this study examines the influence of social network relationships on the success of cultural establishments in Germany. The regression analysis of data from 121 private arts and culture ventures presented here clearly shows that founders as well as managers can overcome numerous barriers through their engagement and activity in social networks, and thereby exercise to a significant degree a positive influence on establishing their enterprise. As expected, this effect is even stronger in cases of low sponsorship of cultural activities on the part of cities and communities. Contrary to expectations, the positive effect of intensive networking activities is not increased by a high intensity of competition; it is worth noting that the effect is strongest in situations of low competitive pressure. The results of this study demonstrate that successful networking expertise, as postulated by research into promoters' activity, is of great importance for overcoming significant barriers in the cultural sector, but that its effectiveness also has limits.