Kinship in Entrepreneur Networks: Performance Effects of Resource Assembly in Africa. (November 2014)

• Record Type: Journal Article
• Authors: Khayesi, Jane N. O.; George, Gerard; Antonakis, John
• Is Part Of: Entrepreneurship theory and practice. Volume 38:Number 6(2014:Nov.)
• Page Start: 1323
• Page End: 1342
• Publication Date: 2014-11
• Subjects: Small business -- Periodicals; New business enterprises -- Periodicals; Entrepreneurship -- Periodicals; 658.421
• DOI: 10.1111/etap.12127
• Languages: English
• ISSNs: 1042-2587

Abstract

We examine the relationship among structural social capital, resource assembly, and firm performance of entrepreneurs in Africa. We posit that social capital primarily composed of kinship or family ties helps the entrepreneur to raise resources, but it does so at a cost. Using data drawn from small firms in Kampala, Uganda, we explore how shared identity among the entrepreneur's social network moderates the relationship between social capital and outcomes. A large network contributed a higher quantity of resources raised, but at a higher cost when shared identity was high. We discuss the implications of these findings for the role of family ties and social capital in resource assembly, with an emphasis on developing economies.