Title: Entrepreneurial social capital and reciprocal dependence effects on strategy: an empirical study of CROs in China

Authors: Hao Hu; Taïeb Hafsi

Addresses: State Key Laboratory of Quality Research in Chinese Medicine, Institute of Chinese Medical Sciences, University of Macau, Room 2057, Research Building N22, Avenida da Universidade, Taipa, Macau ' HEC Montreal, 3000 Côte Ste-Catherine, Montreal, Quebec H3T 2A7, Canada

Abstract: Entrepreneurs must solve the problems related to localisation of information and knowledge relevant to opportunities, uncertainty reduction and incentive misalignment. This is even more important when dealing with large firms, in situations of high uncertainty and large stakes. Using survey data on CROs in China, we found that for entrepreneurial technology firms dealing with powerful partners, the entrepreneur's social capital (relational capital, network ties and cognitive similarity) and his management of internal cohesiveness have a significant bearing on strategy, knowledge exchange and overall performance. The effects are moderated by the reciprocal dependence with the partners. These findings contribute to a better understanding of the entrepreneurial process in unusually uncertain, high-stakes situations.

Keywords: entrepreneurship; high stakes; reciprocal dependence; social capital; relational capital; network ties; cognitive similarity; uncertainty; internal cohesiveness; strategy; China; CROs; contract research organisations; knowledge exchange; firm performance.

DOI: 10.1504/IJESB.2015.067287

International Journal of Entrepreneurship and Small Business, 2015 Vol.24 No.2, pp.208 - 232

Received: 20 Dec 2013
Accepted: 28 Jul 2014
Published online: 02 Feb 2015 *

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