The use of networks in human resource acquisition for entrepreneurial firms: Multiple "fit" considerations

Abstract

This study proposes a multi-dimension, multi-contingent "fit" perspective for examining different practices adapted by entrepreneurial firms in acquiring human resources. We posit that while environmental constraints are important considerations for adapting recruitment practices through networks, strategic needs and interpersonal dynamics are the key drivers behind the evolution of such practices. As they transit from the startup to the growth phase, entrepreneurial firms utilize different network pools in search of diversity, yet cling to strong ties to find talents with common values and goals. Our findings carry important implications for future research in human resource management by integrating the macro- and micro-perspective, and at the same time, enhance the understanding of network effects and their strategic bearings in the entrepreneurial process, specifically in the acquisition of human resources. © 2005 Elsevier Inc. All rights reserved.