Entrepreneurial Network Development:Trusting In The Process

Facing the rapid changes of market and technology,most enterprises brought continued product and technology innovation to relieve the dual pressure of adaptability and efficiency.But statistics show that entrepreneurial success rate of most mature company is no more than 40%,such as P&G entrepreneurial success rate is only 35%.Many enterprises get into financial distress,so much as bankruptcy,because of the failure of key entrepreneurial actions.For the confusion in practice,existing theories provide us with the breakthrough.On the one hand,entrepreneurial network construction is the guarantee of company sustained business success.On the other hand,many companies business failed,it's not because they don't have the market potential,but because of they failed to establish the trust relationship with the stakeholders.When incorporating the company's entrepreneurial behavior into the framework of entrepreneurial network,it is not difficult to found that the change of trust relationship may be one of the important reasons which affects the key entrepreneurship success or failure.At the same time,the NVC's serial entrepreneurship actions provides an evolution model of the research,which can be used to study trust in the evolution of the entrepreneurial network.Based on this,in combination with the practice of NVC,research methods chiefly adopt in-depth interviewing method,document-collected method and case study,systematically extract the nature mechanism of trust in the evolution of the entrepreneurial network,put forward the main propositions,and build the theory model.According to the above content,this paper gets the following conclusions:Firstly,NVC's entrepreneurial network can be divided into "network initial period","network development period" and "network mature period" three stages;Secondly,with the development of entrepreneurial network,the reliance of cognitive trust presents an evolution of the trend that from emotional trust to the system trust.Thirdly,the less of founder equity ratio,the less of control the founder,the balance of equity structure,the improvement of governance of director board and the entrepreneurial diminishing marginal utility of the reciprocal behaviors between the stakeholder will have an impact on the reliance of cognitive trust rather than the reliance of affective and this varies as the entrepreneur moves through the network development process.This study not only expand and enrich the parent-subsidiary entrepreneurship network and trust research field,but also make certain guidance to promote the innovative entrepreneurial practice of the companies.In the process of the research of this paper,we also found three possible research directions,First of all,the research method can use several methods in combination with research,empirical and experiment,etc.in order to enrich the dynamic research of entrepreneurial network,we can also adopt the method of simulation and experiment study.Secondly,measure affective trust and cognitive trust.Finally,we can do research into the dynamic research of entrepreneurial network to prove the conclusion is accidentally or deliberately.