Network dynamics and new ventures in China: A longitudinal study

Abstract

This study examines the effects of networking skills of entrepreneurs on network dynamics and venture legitimacy. The article is based on the longitudinal survey data of 94 Internet entrepreneurs in Beijing, China. The findings suggest that networking skills of entrepreneurs have positive effects on the structural changes of entrepreneurial networks over time. Further, improvements in networking skills of entrepreneurs are conducive to greater venture legitimacy measured as the number of institutional investors in the new venture. The research and practical implications are discussed.

Keywords:

• network dynamics
• networking skills
• internet entrepreneurs
• guanxi
• China

Acknowledgements

The author thanks their research assistants in Beijing for their excellent research assistance; and they appreciate the support of Weiying Zhang and Celine Shen of the Guanghua School of Management of Peking University.