Entrepreneurs' Association Tie and New Venture Growth——A Study from the Information Processing View Contingency Perspective

Abstract

Abstract:

This study segments the entrepreneurs' social network and selects the entrepreneurs' association tie to analyze the relationship between the entrepreneurs' association tie and the new venture growth. Then, this study explores the contingent effect of organization structure on the relationship between the entrepreneurs' association tie and the new venture growth based on the information processing view. Specifically, 302 samples are used in this study to test the relationship between the entrepreneurs' association tie and the new venture growth, and the contingent effect of formalization and decentralization. The results show that the entrepreneurs' association tie is positively related to the new venture growth because of opportunity acquisition. In addition, the results show that formalization will positively moderate the relationship between the entrepreneurs' association tie and the new venture growth, for that formalization is beneficial to information processing capacities. However, decentralization will negatively moderate the relationship between the entrepreneurs' association tie and the new venture growth although decentralization is beneficial to information processing capacities, for that decentralization will lead to interest conflict which will reduce the positive effect of decentralization on information processing capacities. Based on the above conclusions, this study also provides some theoretical contributions and managerial implications from the perspective both new venture and association.

Key words: association tie, new venture, information processing view, organization structure

Chen Jinliang, Lin Song, Liu Xiaoyuan, Ge Jianxin. Entrepreneurs' Association Tie and New Venture Growth——A Study from the Information Processing View Contingency Perspective[J]. , 2019, 31(5): 175-190.

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