Abstract

Aside from the benefits of social capital, researchers are becoming aware of some negative aspects of social networks (Lechner et al., 2006; Pirolo & Presutti, 2010). For example, it is likely that network size could have a negative influence on venture performance when the number of ties exceeds a threshold for which the entrepreneur is unable to benefit. Zhang (2010) called for more research into the potential negative effects of using social networks to guide entrepreneurial activity. We examine the influence of environmental munificence and uncertainty as they affect the number of ties within the network. In addition, we test for an optimal size of one’s social network as it relates to venture performance.

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