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How social and human capital influence opportunity recognition and resource mobilization in India's handloom industry

Authors
Journal
Journal of Business Venturing
0883-9026
Publisher
Elsevier
Publication Date
Volume
25
Issue
3
Identifiers
DOI: 10.1016/j.jbusvent.2008.10.006
Keywords
  • Entrepreneurship
  • Social Networks
  • Handloom Industry
  • Craft Industry
Disciplines
  • Economics

Abstract

Abstract Small-scale firms in rural areas play an extremely important role in the development of any country, and especially in developing countries. To understand entrepreneurs who operate in a low-technology industry, we rely on the network perspective on entrepreneurship. In this paper, we investigate how the social and human capital of entrepreneurs (in this case master weavers in the handloom industry) influence their ability to recognize opportunities and mobilize resources. In addition to examining the direct effects, we also explore the possibilities of social capital mediating between human capital, on the one hand, and opportunity recognition and resource mobilization on the other. This paper adds to existing literature in two ways: firstly, we expand the social capital paradigm by including different cultural settings and links to existing studies regarding small enterprises. Secondly, we provide additional evidence to the ongoing debate as to what constitutes a ‘good network’.

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