Unlocking Trust and Social Capital Key to Success for Startups
The article explores how different types of relationships within business networks affect trust and success for new companies. By studying eight computer industry firms in the western U.S., researchers found that trust and social connections varied greatly among the firms. They identified three types of trust (personal, goodwill, economic) and three types of social relationships (personal, dyadic interaction, social capital). The study revealed seven patterns of embedded network ties, showing that not all relationships are the same. For emerging entrepreneurial firms, understanding these differences is crucial for managing external relationships effectively and achieving success.