Abstract
Extant research on social capital has well documented the effects and consequences of using internal (bonding) versus external (bridging) ties. However, research on the antecedents of internal versus external ties, especially at the national level, is sparse. We investigated the degree to which political instability, institutional support for entrepreneurship, culture, and average income influence the selection of internal versus external ties. We tested our hypotheses in a sample of entrepreneurs from eleven countries from different parts of the world. The results showed that political instability, institutional support for entrepreneurship, and culture significantly influence the types of relationships that are used by entrepreneurs.
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