Networking Behavior and Contracting Relationships among Entrepreneurs in Business Incubators

Abstract

Many studies focus on the relationship between social networks and performance. I study networking behavior as an antecedent of tie formation among entrepreneurs in business incubators. I distinguish between two types of networking behavior: individual networking orientation or building potentially valuable ties for personal gain, and tertius iungens orientation or facilitating tie formation between others. I find that both types of networking behavior are positively related with the number of business partners to whom entrepreneurs give business assignments. Contrary to expectations, I find no relationship between networking behavior and the number of business partners from whom entrepreneurs receive business assignments.