Quakers and capital: The role of social networks and circuits in the evolution of venture capital in Philadelphia, 1980--1999

This dissertation articulates an integrated model of network and cultural change. Building on the work of Collins and Zelizer, this study utilizes the concept of a "circuit" as an extension of the network metaphor; actors interact and connect in a circuit of shared meanings, of culture. The approach taken in this study addresses limitations found in both the network theory and cultural sociology literatures. Specifically, it is argued that network theory has a drastically under-theorized notion of the content of network ties, while culture is typically addressed at the macro-level and not amenable to understanding individual action. It is recognized that culture is transmitted and shared through social interaction and, since we tend to interact more frequently with members in our social networks, it is possible to talk about a culture that is shared by the network, what is called the network circuits framework. This framework focuses on both networks and their constitutive information (circuits) to understand patterns of social interaction. In addition, this framework is useful for understanding social change, as circuits are reproduced or recombined through a variety of mechanisms and diffused through formal and informal organizations. This theoretical framework is utilized to understand the evolution of the growth of venture capital in Philadelphia from 1980 to 1999. Using ethnographic and empirical data on the interactions between entrepreneurs, angel investors and venture capitalists in the Philadelphia region, strong support is found for the main features of the approach. The results reveal that the evolution of patterns of social interactions conformed to long-standing cultural patterns of Philadelphia social structure, rather than more recent cultural attributes associated with venture capital. The dissertation concludes by discussing the implications of this framework for economic sociology and organizational theory.