It is taken for granted that entrepreneurs deeply socially embedded in their communities have a competitive advantage since they have a heightened awareness of opportunities and are less vulnerable to threats. However, we studied social embeddedness and performance and found that the least embedded entrepreneurs had the highest levels of financial performance, and that entrepreneurs most attuned to opportunities were originally outsiders who strove to become more socially embedded, but this did not translate into superior financial performance.
Stinchfield, Bryan T. and Bhrádaigh, Emer Ní
"BLOW-INS LOCALS AND NATIVES: SOCIAL EMBEDDEDNESS AND ENTREPRENEURIAL PERFORMANCE IN THE GAELTACHTS (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 16.
Available at: http://digitalknowledge.babson.edu/fer/vol33/iss14/16