Abstract

In this paper, we investigate the role of personal and financial networks for new venture internationalization in the context of Bulgaria, an Eastern European transition economy. Our main premise is that personal and financial networks are instrumental in new venture internationalization. We further contend that the diversity of the financial network becomes more important for internationalization as the firm grows.

We build on theories of social exchange and resource dependency (Granovetter, 1985; Tichy, Tushman, & Fombrun, 1979) to argue that: (H1): Entrepreneurs' personal networking is positively related to the internationalization of their businesses; (H2): Entrepreneurs' financial networking is positively related to the internationalization of their businesses; (H3): As entrepreneurs' personal networking grows, the effect of financial networking on the internationalization of their businesses increases; and, (H4): As ventures grow, the effect of entrepreneurs' financial networking on their internationalization increases.

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