Abstract

Social network plays an important role in entrepreneurial activity as a courier through which tangible and intangible resources are transmitted (Kwon & Arenius, 2010; Minniti & Bygrave, 1999). However, there has been lack of attention towards the impact of considerable variation in the country-level social network (Klyver & Foley, 2012). This paper aims to clarify the role of country-level social network which either facilitates or hinders individual entrepreneurial activity (Aldrich & Zimmer, 1986). In specific, we propose that the dual mechanisms through which information asymmetry and supportive surroundings elicited by social network can explain the entrepreneurial activity in each country. For the purpose, we develop and use a measure which estimates the size of country-level social circle by simulation.

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