Abstract

Social capital theory has received widespread application in the entrepreneurship literature and has provided insightful findings about the start-up ventures of nascent entrepreneurs. In particular, scholars have found that nascent entrepreneurs initially rely upon exchanges based on affective (goodwill) trust to create access to financial, intellectual and human capital for their start-ups but later, as the entrepreneur begins to expand his or her network in search of opportunities and additional resources, reliance on traditional market exchanges based only on cognitive based trust will become more prevalent. Although insightful, this research stream has given little attention to how or why the experience of failure influences and potentially differentiates the network choices of renascent entrepreneurs. In other words, what becomes of the social relationships that were embedded in the network exchanges of the failed venture of a renascent entrepreneur?

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