Re-arranging the Old Business Model – How Networking Fosters Entrepreneurial Learning

Abstract

In this study, we seek to provide insights into how entrepreneurs might improve their business model innovation capability as a key expression or form of entrepreneurial learning by examining their networking activities. Using a comprehensive dataset of 207 entrepreneurs, we specifically explore how the knowledge heterogeneity of their personal network influences entrepreneur’s capability to adapt existing business models. Our results demonstrate that network knowledge heterogeneity indeed has a positive relationship with business model innovation capability. Moreover, this relationship is moderated by entrepreneurs exchange about failures in their personal network. For example, we found that this relationship is stronger for entrepreneurs exchanging about failures with a low level (high level) when their network knowledge heterogeneity in their personal network is low to mean (mean to high).