Social Capital of Entrepreneurs as a Strategic Resource in New Entrepreneurial Firms

Abstract

The social milieu of India provides a rich and interesting context to explore and study the newlineconcepts like social capital and entrepreneurship. The study was undertaken to understand how the newlinesocial networks of the entrepreneur play a critical role in providing a resource base and whether the newlineentrepreneur utilizes it as a strategic resource for firm activities. newlineNew entrepreneurial firms face lot of resource constraints and internal flux (evolving structures, newlinesystems and processes) and entrepreneurs depend on their social networks to overcome these newlinechallenges. In the initial stages of entrepreneurial firm, social capital resources play a critical role. newlineDespite the acknowledged importance of social capital in early stage of entrepreneurial firms, existing newlineliterature on the topic suggests some prominent gaps in empirical studies and theoretical frameworks newlineabout the phenomena, especially in the Indian context. It is evident that social capital has lot of benefits newlinefor entrepreneurs but the question as to how it affects the early stage entrepreneurial processes and in newlinewhat ways it plays a strategic role in the survival and success of an emerging firm need to be further newlineexplored. The present thesis was an effort to contribute in this regard. newlineThe methodological design for the present study has elements of the case-study research, newlinegrounded theory method, and the techniques for analysing qualitative data. The study was based in newlineHubli-Dharwad region which is emerging as a new Start-up Hub in north Karnataka region. The newlineoverall research design is qualitative in nature using multiple case design. The sample cases (15 cases newlineof early stage entrepreneurs) were taken from the city and cases were built on them based on detailed newlineinterviews with the founders (s) of the firm. The cases were analysed at two levels- within case analysis newlineand cross-case analysis. After that the emerging theoretical constructs were discussed in relation to the newlineextant literature on the topic and propositions and findings were drawn. newlineThe