Abstract

The purpose of this inductive theory-building paper is to address the following research question: How does the role of social capital in fostering the international growth of new technology-based firms (NTBFs) evolve over time? It does so by theorizing from a three-year longitudinal study of four NTBFs based in the Bangalore software industry. The central argument is that the effect of social capital on the international growth of NTBFs is likely to change over time, with a shift from direct to indirect effects. In terms of the indirect effects, knowledge mediates the relationship between social capital and international growth. This mediation strengthens over time. This finding is useful because prior research reveals direct and indirect impacts of social capital on growth but fails to distinguish among them temporally.

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