The Impact of Social Capital on the Start-ups' Performance Growth

Authors


  • Luca Pirolo is currently an assistant professor in Management at Luiss Guido Carli University, Faculty of Economics. He was a Research Fellow at the Department of Business Studies of the University of Uppsala.

  • Manuela Presutti is an assistant professor in Management at the Department of Management of The University of Bologna. She teaches Management at the Faculty of Economy of Rimini (Italy). She was a Research Fellow at the Department of Business Studies of the University of Uppsala.

Manuela Presutti, Department of Management, University of Bologna, via Capo di Lucca 34 40126 Bologna, Italy. Tel: +39-051-2098062; E-mail: manuela.presutti@unibo.it

Abstract

This paper analyzes the development of strong and weak ties of social capital between a start-up and its main customers and its impact on the growth of the start-up's economic and innovative task performance outcomes. Results confirm that there are different configurations of social capital able to influence the start-up's performance growth during its life cycle, which are contingent on the selected measures of task performance outcomes. Our findings can offer some interesting reflections in the field of social capital, entrepreneurship, and performance research, raising critical strategic implications for start-ups in terms of opportunities, resources, and governance.

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