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The origin of the network positions of new organizations: How entrepreneurs raise funds

Posted on:2008-03-15Degree:Ph.DType:Dissertation
University:Stanford UniversityCandidate:Hallen, Benjamin LeeFull Text:PDF
GTID:1449390005963471Subject:Business Administration
Abstract/Summary:
This dissertation examines the mechanisms by which new organizations acquire their initial network positions which are their sets of network ties with other organizations. Although there has been significant research on both the importance and the evolution of the network ties of established organizations, the formation of network ties by new organizations and the creation of their initial network positions has not received attention. I addressed this issue using two complementary methodologies. First, I developed hypotheses from two competing theoretical logics, one based on inherited network ties and status and the other based on accomplishments, that I quantitatively test in a study of venture capitalists and corporate investors forming investment ties with (i.e., investing in) 92 Internet security ventures. Second, I conducted an inductive, multiple-case study of the granular actions that entrepreneurs at nine of these ventures used in the formation of investment ties. This dissertation contributes to the literature on the formation of inter-organizational network ties by identifying the two paths by which organizations gain their initial network positions and their subsequent influence on later ties, and by elucidating the granular strategic actions that entrepreneurs actually use to form their network of ties successfully.
Keywords/Search Tags:Network, New organizations, Entrepreneurs
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