Accessing human capital resources for entrepreneurial endeavors through social networks: The implications of strong tie superiority, social media, and heterogeneous human capital

Research SummaryThis paper uses formal modeling and simulation to develop a more robust theory of how entrepreneurs gain access to human capital resources through their strong and weak social network ties. Whereas prior work focuses on the informational context in which an endeavor operates (i.e., is it risky or uncertain), the models developed in this paper introduce untested assumptions implicit in prior work regarding strong tie superiority, the effects of social media, and human capital heterogeneity. Through a series of simulation analyses, the paper explores a broad range of values for these alternative assumptions and identifies the conditions under which strong and weak ties are the most likely source of human capital for entrepreneurial endeavors.Managerial SummaryEntrepreneurs often need to enlist the support of others to achieve their objectives. This paper develops a better understanding of how entrepreneurs can access the human capital their endeavors require through their social network ties. The paper explores a broad range of conditions to identify when an entrepreneur's strong social network ties are the most likely source of human capital-and when the entrepreneur's weak ties are the most likely source. This paper challenges the assumption that strong ties have an inherent advantage over weak ties in entrepreneurial settings, investigates the impact of social media networks, and highlights the challenges entrepreneurs face when attempting to enlist the support of individuals with different types of human capital.