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NOTE: Since 2009 the title of the International Journal of Entrepreneurship Education (IJEE) has been changed to the title above.  ISSN numbers: IJEE 1649-2269 and IRE 2009-2822

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ISSN Number: 2009-2822. Frequency: 4 Issues per year (online only)  

Article #1677 - The Effect of Entrepreneurial Networks on New Technology-Based Firms’ Growth: The Mediating Role of Growth Orientation

IRE Vol 20: Issue 2, 2022, Pages 277-300

Author(s): Hans Löfsten and Anders Isaksson (Chalmers University of Technology, Göteborg, Sweden) and Heikki Rannikko (Metropolia University of Applied Science, Kaukkala, Finland, and Chalmers University of Technology, Sweden)

Small high-tech firms usually engage in networking to overcome their lack of resources. Entrepreneurial networks can provide valuable social capital resources that enhance the growth possibilities of new technology-based firms (NTBFs). In this context, entrepreneurs’ growth orientation is crucial to explain the growth of new firms. This study determines the effect of entrepreneurial networks on NTBFs’ performance under the mediating influence of growth orientation by analysing 241 NTBFs that were established during 2013 in Sweden. Furthermore, in 2014, the average size of NTBFs was two employees. Exploratory factor analysis of the questionnaire-based data on entrepreneurial networks and growth orientation and secondary business data on sales growth between 2014 and 2016 indicates that growth orientation partially and significantly mediates the relationship between entrepreneurial networks and the growth of small high-tech firms. Therefore, founders’ or managers’ growth orientation can have positive implications for NTBFs’ future development based on the linkages established in the initial operational years.