Too much of a good thing: Entrepreneurs' reliance on referrals and exchange relationship formation

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Balagopal Vissa

2009 Academy of Management Annual Meeting Proceedings Conference paper Cited by 0 Quartile

Abstract

This multi-method study seeks to understand the drivers and performance consequences of entrepreneurs' reliance on referral based search for new exchange partners. I posit that entrepreneurs rely more on referral based search when their interpersonal networking behaviors focus less on adding new contacts and more on maintaining existing contacts. I then propose that entrepreneurs are likely to add more new exchange partners when they rely less on referral based search. The empirical analysis employs a longitudinal design using data coded from the business cards of new contacts formed over a two-month period by a panel of Indian entrepreneurs operating business-to-business ventures in a single industry sector. This study makes a theoretical contribution by delineating actors' behaviors that shape evolution of their local network structure and its performance consequences.

Affiliations

INSEAD, Singapore 138676, 1, Ayer Rajah Avenue, Singapore