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Title: Direct ties, prior knowledge, and entrepreneurial resource acquisitions in China and Singapore
Authors: Zhang, J.
Soh, P.-H.
Wong, P.-K. 
Keywords: direct ties
prior knowledge
resource acquisition
Issue Date: 2011
Citation: Zhang, J., Soh, P.-H., Wong, P.-K. (2011). Direct ties, prior knowledge, and entrepreneurial resource acquisitions in China and Singapore. International Small Business Journal 29 (2) : 170-189. ScholarBank@NUS Repository.
Abstract: The entrepreneurship literature suggests that network ties are useful in mitigating the problem of information asymmetry faced by entrepreneurs when acquiring resources at the early stage of venture creation. We introduce prior knowledge of resource owners as an inverse measure of information asymmetry and investigate the contingent effect of prior knowledge and tie strength between entrepreneurs and resource owners on the likelihood of entrepreneurial resource acquisition. Using data from 378 high-tech ventures located in Beijing, China and Singapore, the analysis shows that strong ties are more important than weak ties, in entrepreneurs' resource acquisition and this importance grows when resource owners have less prior knowledge to offset problems of information asymmetry. Similar network effects are found in both China and Singapore. The insignificant country difference suggests that the social network culture of the start-up community is universal. © The Author(s) 2011.
Source Title: International Small Business Journal
ISSN: 02662426
DOI: 10.1177/0266242610391931
Appears in Collections:Staff Publications

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