The Dynamics of Entrepreneurial Networks in a Transitional Economy: The Case of Russia

Abstract

The dynamics of personal networks of entrepreneurs in Russia are explored in this paper. Drawing on the social embeddedness perspective and social network theory, I examine the impacts of initial network range, previous occupational status of entrepreneurs and firm performance on the changes in structural, relational and resource dimensions of entrepreneurial social capital over time. The face-to-face interviews with 75 Russian entrepreneurs in 1995 and the follow-up study in 1999 comprise the empirical data of the paper. The dynamics of social capital are determined by the initial network range and firm performance: the better the initial network and firm performance the less the likelihood of increase in various elements of entrepreneurs' social capital.