Entrepreneurial Social Capital and the Gatsby Effect

Journal of Business & Entrepreneurship, Vol. 20, No. 1, pp. 18-36, 2008

Posted: 30 Dec 2008

See all articles by Jamie D. Collins

Jamie D. Collins

Sam Houston State University

Klaus Uhlenbruck

affiliation not provided to SSRN

Christopher R. Reutzel

Utah State University

Date Written: March 30, 2008

Abstract

Drawing insights from Fitzgerald's "The Great Gatsby", we explore a potentially significant impediment facing entrepreneurial firms as they attempt to augment and utilize their relationships with other firms. Significant differences in the quality of social capital can exist for entrepreneurial firms with similar sets of capabilities and initial structural connections to potential exchange partners. The influence of status differences between firms' representatives is emphasized as potentially detrimental whenever entrepreneurial firms are establishing new connections. Further, entrepreneurial firms attempting to convert existing weak ties into strong ties with established firms are most likely to encounter problems due to representatives' social status differences. Thus, entrepreneurs are encouraged to consider the downside of status when developing new relationships with existing firms.

Keywords: social capital, entrepreneurship, status

Suggested Citation

Collins, Jamie D. and Uhlenbruck, Nikolaus (Klaus) T. and Reutzel, Christopher R., Entrepreneurial Social Capital and the Gatsby Effect (March 30, 2008). Journal of Business & Entrepreneurship, Vol. 20, No. 1, pp. 18-36, 2008, Available at SSRN: https://ssrn.com/abstract=1321778

Jamie D. Collins (Contact Author)

Sam Houston State University ( email )

Box 2056
Huntsville, TX 77341
United States

Nikolaus (Klaus) T. Uhlenbruck

affiliation not provided to SSRN

Christopher R. Reutzel

Utah State University ( email )

Logan, UT 84322-3530
United States

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