Paper info: The Role of Networking and Social Capital in the Initiation of Relationships in Passion Based Service Networks
Title
The Role of Networking and Social Capital in the Initiation of Relationships in Passion Based Service Networks
Authors
Louise Canning
University of Birmingham
United Kingdom
Sheena Leek
University of Birmingham
United Kingdom
Place of Publication
The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.
Download
 | Download paper (211.9 kb) |
Abstract
Abstract
When embarking on setting up a new business venture entrepreneurs need to be able to establish business relationships with suppliers, buyers and other stakeholders and develop their network. This network of business relationships can be achieved either through the use of the entrepreneur’s social capital and/or through the process of networking. The aim of networking is to contact people who will be of some use to the business. This paper investigates how social capital and networking are used to build a passion based business network i.e. a business which has evolved from a personal interest and has an associated lifestyle. Two cases are investigated one within the adventure sports sector and one within the performing arts. It was found that social capital is important in the preplanning and initial set up phase of the business but that a variety of methods of networking became more important as the business expanded. The use of social capital may be affected by the degree of overlap between the entrepreneurs’ pre-business activities and the nature of the business being set up.
Keywords: passion network, social capital, networking, relationship initiation
When embarking on setting up a new business venture entrepreneurs need to be able to establish business relationships with suppliers, buyers and other stakeholders and develop their network. This network of business relationships can be achieved either through the use of the entrepreneur’s social capital and/or through the process of networking. The aim of networking is to contact people who will be of some use to the business. This paper investigates how social capital and networking are used to build a passion based business network i.e. a business which has evolved from a personal interest and has an associated lifestyle. Two cases are investigated one within the adventure sports sector and one within the performing arts. It was found that social capital is important in the preplanning and initial set up phase of the business but that a variety of methods of networking became more important as the business expanded. The use of social capital may be affected by the degree of overlap between the entrepreneurs’ pre-business activities and the nature of the business being set up.
Keywords: passion network, social capital, networking, relationship initiation