Effects Of Start-up Firms' Social Network On Knowledge Transfer And Firm Growth

Today entrepreneurial activities are growing vigorously and facilitating the economic development in China. Lacking knowledge and key resources always restrict growth of start-up firms. Social network is a critical way for start-up firms to obtain knowledge and resources. Effects of start-up firms'social network on knowledge transfer and firm growth becomes a hot topic.This paper reviews the relevant literatures of social network, knowledge transfer and start-up firm growth. A research model is built and the hypotheses are proposed. Using the questionnaire survey method, effects of start-up firms' social network on knowledge transfer and firm growth are explored. Regression analysis is adopted to test hypotheses. The research results are as follows:as far as effects of start-up firms' social network on knowledge transfer are concerned, higher density of start-up firms'social network as well as closer of start-up firms to center position of network can facilitate knowledge transfer to state-up firms; stronger tie strength, higher level trust and longer duration of relations among network members can facilitate knowledge transfer to state-up firms; Larger size of start-up firms' social network can hinder knowledge transfer to state-up firms. As far as effects of start-up firms' social network on firm growth are concerned, higher density, larger size of start-up firms' social network as well as closer of start-up firms to center position of network can promote firm growth; stronger tie strength, higher level trust and longer duration of relations among network members can promote firm growth. Network heterogeneity of start-up firms' social network has no significant effects on knowledge transfer and firm growth. In addition, the knowledge transfer from start-up firm's social network to start-up firm has positive effect on firm growth. Based on the research results, this paper proposes strategies to promote knowledge transfer and firm growth of state-up firms.