Family Ties in Entrepreneurs' Social Networks and New Venture Growth

32 Pages Posted: 5 Mar 2015

See all articles by Jean‐Luc Arregle

Jean‐Luc Arregle

EM LYON Business School

Bat Batjargal

Harvard University - Davis Center

Michael A. Hitt

Texas A&M University - Department of Management; Texas Christian University

Justin W. Webb

Oklahoma State University - Stillwater

Toyah Miller

Indiana University - Kelley School of Business - Management & Entrepreneurship

Anne S. Tsui

Arizona State University (ASU)

Date Written: March 2015

Abstract

Family ties are an important conduit of resources for entrepreneurs, but both positive and negative outcomes can arise. Building upon a family embeddedness perspective, we develop hypotheses about curvilinear relationships between the proportion of family ties in entrepreneurs' networks and venture growth. We test them on entrepreneurs from China, France, Russia, and the United States. These effects appear to be related to the type of entrepreneurs' social network (business advice, emotional support, and business resources). Our results confirm effects specific to each network: an inverted U‐shape for advice and emotional support networks but a U‐shape for the business resource network, measuring what proportion of kin in each entrepreneurial network type is valuable to or, conversely, undermines new venture growth.

Suggested Citation

Arregle, Jean-Luc and Batjargal, Bat and Hitt, Michael A. and Webb, Justin W. and Miller, Toyah and Tsui, Anne S., Family Ties in Entrepreneurs' Social Networks and New Venture Growth (March 2015). Entrepreneurship Theory and Practice, Vol. 39, Issue 2, pp. 313-344, 2015. Available at SSRN: https://ssrn.com/abstract=2574022 or http://dx.doi.org/10.1111/etap.12044

Jean-Luc Arregle (Contact Author)

EM LYON Business School ( email )

23 Avenue Guy de Collongue
Ecully, 69132
France

Bat Batjargal

Harvard University - Davis Center ( email )

Cambridge, MA 02138
United States

Michael A. Hitt

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-458-3393 (Phone)

Texas Christian University ( email )

Fort Worth, TX 76129
United States

Justin W. Webb

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

Toyah Miller

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States

Anne S. Tsui

Arizona State University (ASU)

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