Founders' uses of digital networks for resource acquisition: Extending network theory online

Entrepreneurs invest considerable time and effort cultivating digital networks but it is not clear what benefits they derive from this investment. Emerging research on digital networks suggests that online networking behavior may differ from networking face-to-face due to affordances of digital network technologies. This article draws on depth interviews with 26 founders to investigate the extent to which founders extract resources from digital networks. Contrary to behavior predicted by current network theory, founders are found to extract few resources, other than information, from their digital networks. This is due, in large part, to lack of willingness resulting from perceived social judgment risk. Implications for theory and practice are discussed.

Automated summary

Most founders extract few resources from digital networks, primarily obtaining information, due to a lack of willingness stemming from perceived social judgment risk.