Publication Type

Journal Article

Version

submittedVersion

Publication Date

2-2022

Abstract

We investigate entrepreneurial network activation—the processes by which entrepreneurs select specific contacts from their existing personal network and persuade the selected contacts to provide referrals to access targeted early-stage investors (venture capitalists or angel-investors). We differentiate between selection of entrepreneur-centric contacts versus investor-centric contacts. We also distinguish between persuasion tactics that induce contacts' cooperation through promises of reciprocity versus offers of monetary incentives. We conducted two field-experiments in India and one in Singapore. Our primary field-experiment involved 42 Singapore-based entrepreneurs seeking referrals from 684 network contacts to reach a panel of four investors. Our evidence suggests that selecting investor-centric contacts leads to greater referral success; in addition, persuasion by promising reciprocity also leads to greater referral success.

Keywords

Entrepreneurship, Social networks, Network activation, Venture financing, Field experiments

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Strategic Management Journal

Volume

43

Issue

2

First Page

323

Last Page

339

ISSN

0143-2095

Identifier

10.1002/smj.3341

Publisher

Wiley

Embargo Period

1-12-2022

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1002/smj.3341

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