Abstract
The study tests whether strong rather than weak ties account for small business growth in Turkey. Data were collected by means of a questionnaire filled out by the owners of small firms operating in four cities. Growth is comprised of two main areas, production expansion and knowledge acquisition. Results show that strong ties are positively related to both types of growth. In contrast, loose ties have no effect on small business growth in either area. This finding is attributed to the influence of the collectivistic nature of the mainstream Turkish culture, where owners of small businesses are likely to rely on in-groups rather than out-groups for advice and for financial support. Implications of relative absence of weak ties for small business growth and innovation in emerging economies are discussed. The findings suggest that culture should be included as a contingency variable in future studies of network strength and growth relationship. The paper also discusses the possible moderating role of affective and cognition-based trust in the relation of strong and weak ties to small business growth.
Highlights
Social capital has long been at the forefront of entrepreneurial research, and small business owners’network of relations has been studied as a major factor stimulating nascent and continued entrepreneurship
The results show that strong ties are related to both growth areas, whereas weak ties have no effect
In support of Bian’s [9] argument for the contingency role of context, the present findings show that a collectivistic cultural setting with its emphasis on in-groups rather than out-groups tips the balance toward strong ties in facilitating growth
Summary
Social capital has long been at the forefront of entrepreneurial research, and small business owners’. Network of relations has been studied as a major factor stimulating nascent and continued entrepreneurship. At the core of this literature is the distinction between strong and weak networks. Strong ties involve emotional intensity and intimacy; persons in the network know each other well [1,2]. Weak ties on the other hand are non-affective and less intense; network persons are not closely related [3]. Arguments are advanced in favor of one or the other type of network in facilitating entrepreneurship [4,5]. Some claim that strong and weak networks may be complementary. Burt [6], for example, argues that they play different roles for different purposes or in different populations
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