Empirical study on the influence of social network on resource development of new firms

In this paper we develop a theoretical model for the relationship among environmental dynamism, social network and resource development of new firms. Resource development includes resource acquisition and resource integrating. We analyze the effect of network size and network intensity on resource acquisition and resource integrating. We also analyze the effect of environment dynamism on the characteristics of social networks. Empirical data are from samples of 326 start ups in Jilin province in China. The results show that network intensity is positively associated with resource acquisition and resource integrating; the resource acquisition has positive effect on resource integrating, and environmental dynamism has positive effect on network size and intensity. This study suggests that network intensity is very important for new firms in start up stage to develop resources under dynamic environment. But the effect of network size on resource development is not significant.