Sarah Jack

The articulation of social capital in entrepreneurial networks: a glue or a lubricant?

While social capital has been applied in a variety of contexts, the nature, role and application of social capital in an entrepreneurial context have not been extensively explored. The nature of social capital presents a conceptual puzzle in that it is said to be both glue, which forms the structure of networks, and at the same time a lubricant that facilitates the operation of networks. Using techniques of participant observation and interviews, this paper attempts to resolve this enigma. It finds that social capital is not a thing, but a process that creates a condition of social capital. The structural and relational aspects are found to be dimensions of this process. Interestingly, the data also demonstrates that there are successful etiquettes of social capital formation. These etiquettes provide the rules and framework for the interactions.

Entrepreneurship education within the enterprise culture: Producing reflective practitioners

The enterprise culture is founded on the premise that entrepreneurship is the engine that drives the economy. One aspect of this cultural pervasion is the increase in the numbers of educational institutions teaching entrepreneurship courses. Yet this hegemony of the encouragement of new business start‐up, almost for its own sake, needs to be critically reviewed. One aspect is the enigmatic nature of entrepreneurship itself; what is it, and can it be taught? Another aspect is the very different expectations of those stakeholders promoting entrepreneurship education. Argues that the process of entrepreneurship involves both art and science; consequently our students need more than SME management skills. Graduating enterprise students must be innovative and creative to satisfy the need for entrepreneurial novelty ‐ the art. Yet, paradoxically they also need to be competent and multifunctional managers ‐ the science. Explores both these areas to argue that theory can bridge the art and science. The final section explains briefly how the recent research and practice at Aberdeen University attempts this synthesis. The intended outcome of our educational process are reflective practitioners, fit for an entrepreneurial career.

Change and the development of entrepreneurial networks over time: a processual perspective

Although it is now well established that networks contribute to entrepreneurship by extending the individual entrepreneurial asset base of human, social, market, financial and technical capacity, little work, empirical or theoretical, has examined the dynamics of networking processes in a temporal framework. Drawing on evidence from three longitudinal case studies of entrepreneurs operating in the oil industry in the North East of Scotland, this paper presents an extensive empirical investigation into network transformation over time. We are thus able to chart networks in their historical contingency. This chronological lens allows us to view patterns in network continuity and change and enables us to develop a rich conceptual framework. The study demonstrates that networks are vital living organisms, changing, growing and developing over time. Yet set in their history, networks are much more than an extension of the entrepreneurial asset base. Our data shows how a reconceptualization of the nature of networking is called for; one which privileges an understanding of the relational dynamic as a structural configuration representing the social construction of the entrepreneurial environment. Thus our conceptualization proposes that networks actually create the environment, as it is understood and operated by the entrepreneur, and that consequently the networking process is the enactment of the environment.

The Role of Family Members in Entrepreneurial Networks: Beyond the Boundaries of the Family Firm

Research has traditionally concentrated on formal kin involvement in the family business. This study investigates if, to what extent, and how entrepreneurs capitalized on resources embedded in the family, but beyond the formal traditionally defined boundaries of the family firm. Employing both quantitative and qualitative approaches, the study finds that about one-quarter of our samples entrepreneurial network ties were kin, and that most of these worked outside the formal family firm. These ties provided a range of very important resources, both professional and affective in nature. Such beneficial ties extend the family firm without incurring the typical hazards of external linkages.

Entrepreneurial Social Capital Conceptualizing Social Capital in New High-tech Firms

Although the literature on social capital has increased dramatically in recent years, concerns have been raised about the expanse of applications of the term, diversity of constructs, definitions and variety of analyses. The purpose of this article is to clarify the conceptualization of social capital in entrepreneurship.To achieve this, the article begins with a review of the extensive literature on social capital.This provides a preliminary theoretical framework about the nature and categories of social capital. Thereafter, an account is provided of an empirical study in which in-depth and extensive data were gathered about the social interactions of entrepreneurs from 10 technology firms. Findings demonstrate that social capital is a social relational artefact produced in social interactions. It is not owned but represents a pool of goodwill residing in a social network and it can be envisaged as a revolving mutual fund of traded and un-traded interdependencies.

An entrepreneurial network evolving: Patterns of change

It is now recognized that to broaden our understanding about networks more qualitative and longitudinal work is required that examines transformation and the change processes of networks; how they emerge and develop over time. The case study reported here deals with these issues. It considers the development of a network for new entrepreneurs first established by a local enterprise support agency in North East Scotland.This forum provided a near ‘natural experiment’ to chart network emergence, change and evolution. Employing participant observation, interviews and surveys, data were collected over a six-year period. This allowed the network to be mapped, and provided information about structural characteristics and in-depth detail about network dynamics and change processes over time. Findings show how network structure shifts from calculative to affective ties and demonstrate the importance of social ties for the operation of a network.

Social Capital and Entrepreneurship An Introduction

Social capital is a widely used concept in the social sciences, but its precise meaning is elusive. It has been variously and broadly defi ned as involving the building and maintaining of networks and the norms of behaviour that underpin them (Putman, 2000); the goodwill that is engendered by the fabric of social relations and that can be mobilized to facilitate action (Adler and Kwon, 2002: 17); and taken to be the sum of the resources that accrue to an individual or group, by virtue of possessing networks (Bourdieu and Wacquant, 1992). The majority of individuals are embedded in social situations and consequently can take advantage of the wider social relations in which their ties are embedded (Kim and Aldrich, 2005). A recent survey of the meanings and application of social capital confi rmed that by making connections with others, with whom they share values, individuals are able to achieve more than if they acted alone. The network thus becomes a resource underpinned by social capital, which constitutes an intangible asset (Field, 2003). The diffi culty of actually defi ning social capital makes it controversial and an ideal focus for conference discussion. This special issue is based on a selection of papers presented at a symposium, hosted by the Institute for Entrepreneurship and Enterprise Development, Lancaster University Management School, in November 2004, to discuss the relationship between social capital and entrepreneurship. Interestingly, this symposium demonstrated the trans-disciplinary nature of both entrepreneurship and social capital, and brought perspectives from sociology, economics, history and from practitioners. In this Editorial we fi rst illustrate the relevance of social capital to the development of our understanding of entrepreneurship. Second, we highlight a number of themes emerging from the study of social capital within the entrepreneurial context. Third, we outline the articles presented in this special issue and identify the key themes in each of the contributions. Finally, we conclude with a number of suggestions for further research.

Social structures and entrepreneurial networks: the strength of strong ties.

The entrepreneurial context provides a fertile arena for the study of networks. This qualitative study critically examines the nature, content and process of strong ties, which are found to fall into three categories: family, business contacts, and suppliers, competitors and customers. These nodal categories each provide a specific range of support to the entrepreneur. Their appropriate and effective utilization greatly facilitates enterprise performance.

Entrepreneurship and mutuality: social capital in processes and practices

Social capital, which offers the broader theoretical construct to which networks and networking relate, is now recognized as an important influence in entrepreneurship. Broadly understood as resources embedded in networks and accessed through social connections, research has mainly focused on measuring structural, relational and cognitive dimensions of the concept. While useful, these measurements tell us little about how social capital, as a relational artefact and connecting mechanism, actually works in practice. As a social phenomenon which exists between individuals and contextualized through social networks and groups, we draw upon established social theory to offer an enhanced practical understanding of social capital – what it does and how it operates. Drawing on the work of Pierre Bourdieu and Robert Putnam, we contribute to understanding entrepreneurship as a socially situated and influenced practice. From this perspective, our unit of analysis is the context within which entrepreneurs are embedded. We explored the situated narratives and practices of a group of 15 entrepreneurs from ‘Inisgrianan’, a small town in the northwest of Ireland. We adopted a qualitative approach, utilizing an interpretive naturalistic philosophy. Findings show how social capital can enable, and how the mutuality of shared interests allows, encourages and engages entrepreneurs in sharing entrepreneurial expertise.

Role typologies for enterprising education: the professional artisan?

– The purpose of this paper is to examine how the context, approach and teaching techniques used for entrepreneurship education need to reflect the different roles that encompass enterprise., – The authors analyse and reflect upon what attributes, qualities, skills and knowledge are required for the different roles involved in entrepreneurship., – From the analysis the authors identify role typologies and argue that teaching entrepreneurship needs to produce a combination of the creative talents of the artist, the skills and ability of the artisan, yet include the applied knowledge of the technician with the know‐what of the professional. The authors then present some examples of pedagogies in entrepreneurship that might be used to develop the skills required for these roles., – The authors demonstrate why the teaching of entrepreneurship requires a combination of theory and practice., – The paper shows that a different approach to understanding entrepreneurial pedagogy may be useful for educators and students.