Social Capital ,Knowledge Processes and Entrepreneurial Success ~Sharada B.

Social Capital ,Knowledge Processes and Entrepreneurial Success of firm Knowledge Processes of firm Entrepreneurial Success Knowledge Assimilation Knowledge Exploitation Knowledge Creation /Acquisition

Focus Areas Background Areas Social Capital Knowledge Processes (Creation, Assimilation, Exploitation) High Technology Entrepreneurship Background Areas Resource based View Entrepreneurship

Social Capital Social capital is defined as “The sum of actual and potential resources embedded within ,available through, and derived from the network of relationships possessed by an individual or social unit. Social capital thus comprises both the network and the assets that may be mobilized through that network”(Nahapiet and Ghoshal). The 3 dimensions of social capital that have been discussed in literature are the Structural, Relational and Cognitive.

High Technology Industries Medcof 1999 :“one whose business activities are heavily dependent upon innovation in science and technology”. Baruch, 1997 :those in which R&D accounts for a substantial portion of the business’s operations, in which technological innovation is on the cutting edge, and in which a large proportion of the employees have university degrees (10 percent or more equals a high tech firm) Reeble 1990 :“high-technology industries engage in activities that have high rates of change, high levels of research and development expenditures, and innovative products”. Shanklin & Ryans, 1984 :high technology ventures are grounded in science and work with technology that obsoletes previous technology

Review Social capital, intellectual capital, and the organizational advantage. Academy of Management J Nahapiet, S Ghoshal - The Academy of Management Review, 1998 Discusses the different dimensions of social capital .Contributes by adding a new dimension called cognitive dimension. Conceptual paper linking social capital, intellectual capital and organizational advantage. Social capital provides enables the activities of knowledge and exchange thereby resulting in greater intellectual capital. Social Capital, Knowledge Acquisition, and Knowledge Exploitation in Young Technology-Based Firms Helena Yli-Renko, Erkko Autio and Harry J. Sapienza Strategic Management Journal,2001 Knowledge acquisition mediates between social capital and knowledge exploitation. Studies the relationship between the firm and only its key customer. Social capital :Social interaction, relationship quality, network ties. Knowledge Exploitation : New product Development, Technological Distinctiveness, Sales costs

Review Social capital and entrepreneurial growth aspiration: a comparison of technology- and non-technology-based nascent entrepreneurs Jianwen Liao and Harold Welsch,2003 How the 3 dimensions of social capital interact among each other and their relationship with entrepreneurial growth aspiration in tech and non tech ventures. Social capital, knowledge management, and sustained superior performance Hoffman, James J.; Hoelscher, Mark L.; Sherif, Karma Journal of Knowledge Management,2005 5 dimensions of social capital: information channels, social norms, identity,obligations and expectations, moral infrastructure Social capital can enhance knowledge management within an organization by Facilitating combination and exchange required for creation of IC (Nahapiet and Ghoshal,1998) Role in the development of core competencies (Kogut and Zander,1996) Increases efficiency of action(Lesser,2000) Encourages co-operative behavior (Coleman 1988, Nahapiet and Ghoshal,1998) Important element in development of human capital(Coleman,1988)) Provide access to resources through network ties(Burt,1992)

Review Knowledge creation process in new venture strategy and performance Tsai, Ming-Tien and Li, Yong-Hui Journal of Business Research, 2007 Knowledge creation process is positively linked to firm performance. Knowledge creation focus on SECI model. PROCESSES OF KNOWLEDGE CREATION IN KNOWLEDGE-INTENSIVE FIRMS: A COMPARATIVE STUDY BETWEEN BOSTON´S ROUTE 128 AND SPAIN Pedro Lopez Saez, José Emilio Navas López, Gregorio Martín de Castro Technovation,2008 Although theoretical models ( SECI ) of Knowledge creation are important ,context matters. Each business context imposes important conditions on how process of knowledge creation is structures in real firms Knowledge creation is a dynamic process that required social constructionist approach.

Social Capital Social Interaction Relationship Quality Customer Network ties Social Capital, Knowledge Acquisition, and Knowledge Exploitation in Young Technology-Based Firms Helena Yli-Renko, Erkko Autio and Harry J. Sapienza Strategic Management Journal,2001 Structural Dimension: Network ties, Network configuration, Appropriable organization Cognitive Dimension: Shared codes and language, Shared narratives Relational Dimension: Trust, Norms, Obligations, Identification Social capital, intellectual capital, and the organizational advantage. Academy of Management J Nahapiet, S Ghoshal - The Academy of Management Review, 1998

High Technology Ventures Research intensity (ratio of R&D expenditures to sales); Total R& D expenditures Sales growth. Number of scientific/technical types would be another indicator of a high technology firm. External sources ( the extent to which the venture uses strategic alliances, acquisition, licensing agreements or outright purchase of technology). The degree of radicality of innovation Intellectual property (patents, copyrights, trademarks, or trade secrets) THE FOUNDATIONS OF HIGH TECHNOLOGY START-UPS: THE WHO, WHERE, WHEN, AND WHY Timothy M. Stearns, California State University, Fresno Kathleen R. Allen, University of Southern California

Knowledge creation process Socialization Cooperative projects across directorates The use of apprentices and mentors to transfer knowledge Brainstorming retreats or camps Employee rotation across areas Externalization A problem-solving system based on a technology like case-based reasoning Groupware and other learn collaboration tools Pointers to expertise Modeling based on analogies and metaphors Capture and transfer of experts' knowledge Combination Web-based access to data Web pages Databases Repositories of information, best practices, and lessons learned Internalization On-the-job training Learning by doing Learning by observation Knowledge creation process in new venture strategy and performance Tsai, Ming-Tien and Li, Yong-Hui ,Journal of Business Research, 2007

Knowledge Exploitation Technological Distinctiveness New product Development Sales costs reduction Social Capital, Knowledge Acquisition, and Knowledge Exploitation in Young Technology-Based Firms Helena Yli-Renko, Erkko Autio and Harry J. Sapienza Strategic Management Journal,2001

New venture performance Efficiency Return on investment Return on equity Return on assets Growth Change in sales Change in employees Market share growth Profit Return on sales Net profit margin Gross profit margin Knowledge creation process in new venture strategy and performance Tsai, Ming-Tien and Li, Yong-Hui ,Journal of Business Research, 2007

Thank You

Identifying 'Super-Technology' Industries Author: Medcof, John W. Source: Research-Technology Management, Volume 42, Number 4, 1 July 1999 , pp. 31-36(6) Publisher: Industrial Research Institute, Inc Market Networks and Corporate Behavior Wayne E. Baker The American Journal of Sociology (1990) Social Capital positively Related to firm performance .

High tech sectors Aerospace technology Biotechnology Information technology Nanotechnology Robotics Connor, K.R., 1991. A historical comparison of resource-based theory and five schools of thought within industrial economics: do we have a new theory of the firm?. J. Manage. 17, pp. 121–154. Deeds, D.L., DeCarolis, D. and Coombs, J.E., 1998. Firm-specific resources and wealth creation in high-technology ventures: evidence from newly public biotechnology firms. Entrep. Theory Pract. 22 3, pp. 55–73.