url
30
Dec
2013

Roles of Networks and Social Capital in the Success of International Entrepreneurs: The role of relationships networks

International entrepreneurship, networks and social capital: how to explain the international success of entrepreneurs
Several theoretical frameworks have been mobilized to study international entrepreneurship. There are the theory of networks and social capital, theory of support, the theory of psychic distance, the approach based on resources and skills. In this research, we are mainly going focus on the network and social capital theory. The concept of “social network” refers to relations between persons and social groups. Therefore, three elements must be considered when talking about social network: personal relationships, network structure (the set of links and nodes) and confidence (which feeds the central component networks). Julien, considering the social and economic trends, proposes to distinguish: personal networks (emotional relationships based on trust), networks or business transactions (stakeholders both upstream and downstream) and informational networks (other sources of new information). What motivates entrepreneurs to go into foreign markets? And what is the role of social networks in the success of this implementation within a hostile multicultural environment3?.
For individual entrepreneurs that set up foreign markets, having relationships to access useful information, is essential to their success in the host country. It is then important to have resource people in the host country, but also in their native country. In this context, the family can play a fundamental role. It offers the possibility to be in contact with many people and institutions necessary for successful implantation abroad. Retailing in rural

The expatriation process for individual entrepreneurs involves “learning to adapt oneself to new markets, some degree of motivation and innovation, an ability to make decisions and implement an appropriate international strategy. Networks influence each of these entrepreneurial processes “.
The role of social networks in the process of expatriation may concern:
–    Information and identification of the international opportunity;
–    International learning process
–    Leverage on tangible and intangible resources and marketing capacity
–    The decision of market choice
–    Gains credibility
–    The posterior approach and the degree of internationalization.
As noted by Ferro and al., belonging to a network requires access to useful information. We formulate the proposition that “the networks provide a forum to obtain reliable information that can inform decision making of the individual entrepreneur.”

International entrepreneurship, networks and social capital: how to explain the international success of entrepreneurs Several theoretical frameworks have been mobilized to study international entrepreneurship. There are the theory of networks and social capital, theory of support, the theory of psychic distance, the approach based on resources and skills. In this research, we are mainly going focus on the network and social capital theory. The concept of “social network” refers to relations between persons and social groups. Therefore, three elements must be considered when talking about social network: personal relationships, network structure (the set of links and nodes) and confidence (which feeds the central component networks). Julien, considering the social and economic trends, proposes to distinguish: personal networks (emotional relationships based

About The Author

Kevin J. Brandon

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