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      Role of strong versus weak networks in small business growth in an emerging economy

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      Author
      Kozan, M. K.
      Akdeniz, L.
      Date
      2014-02
      Source Title
      Administrative Sciences
      Print ISSN
      2076-3387
      Publisher
      MDPI
      Volume
      4
      Issue
      1
      Pages
      35 - 50
      Language
      English
      Type
      Article
      Item Usage Stats
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      Abstract
      The study tests whether strong rather than weak ties account for small business growth in Turkey. Data were collected by means of a questionnaire filled out by the owners of small firms operating in four cities. Growth is comprised of two main areas, production expansion and knowledge acquisition. Results show that strong ties are positively related to both types of growth. In contrast, loose ties have no effect on small business growth in either area. This finding is attributed to the influence of the collectivistic nature of the mainstream Turkish culture, where owners of small businesses are likely to rely on in-groups rather than out-groups for advice and for financial support. Implications of relative absence of weak ties for small business growth and innovation in emerging economies are discussed. The findings suggest that culture should be included as a contingency variable in future studies of network strength and growth relationship. The paper also discusses the possible moderating role of affective and cognition-based trust in the relation of strong and weak ties to small business growth.
      Keywords
      Small Business Growth
      Entrepreneurship
      Strong Ties
      Weak Ties, Networks
      Turkey
      Permalink
      http://hdl.handle.net/11693/12560
      Published Version (Please cite this version)
      http://dx.doi.org/10.3390/admsci4010035
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