Social Capital and Venture Development in a Low-Trust Environment

This study investigates the relevance of social capital for entrepreneur-actor relationships in the development of sustainably operating ventures in the low-trust environment. The study reveals the following: (a) social capital can serve as an asset, access to opportunities, protection, or be a danger for ventures; (b) entrepreneurs are highly selective in whom they deal with; (c) their selectivity is framed with the “whom can I trust” and “whom I should know” justification; (d) they apply verification for continuing adjustment of the entrepreneur-actor relationship strategies to social and economic reality of venture operations. The study presents five strategies of entrepreneur-actor relationships in a low-trust environment.

Journal or Publication:
Academy of Management Proceedings
Julia Ivy
Joanne Larty
Sarah Jack
Year Published
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