Munich Personal RePEc Archive

Networking Activities and Growth of Newly Founded Firms under Incubation

Demirgil, Hakan and Karaoz, Murat and Baptista, Rui and Sungur, Onur (2011): Networking Activities and Growth of Newly Founded Firms under Incubation.

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Abstract

The network approach to entrepreneurship has become a notable theoretical perspective within the literature. Networking activities enable gaining resources for new ventures in growth process while allowing growing firms to maintain their flexibilities. In this study, we investigate the effects of intra-incubator networking activities on new firm growth performance in business incubators. Based on a survey of newly founded firms located in three major incubation centers located in Adana, Tarsus and Samsun cities in Turkey, we empirical test the network success hypothesis. Differences between growing and non-growing firms have been analyzed by using essential network characteristics. Empirical research investigating the effect of networking on incubated new firm performance is rare. Among them, to our knowledge, we, first time, employ essential network characteristics approach in performance analysis among incubated firms. The results have shown that incubated firms have similar intra-incubator networking intensity whether it is a growing or non-growing over time.

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