Entrepreneurial orientation in the social network age: Navigating with dynamic capabilities and cognitive flexibility

Abstract

The intricate dynamics between social networks and entrepreneurial orientation (EO) present a fertile ground for academic inquiry. This study seeks to bridge the existing knowledge gaps concerning the boundary conditions impacting the dynamics of social networks and EO. Our research targets the influence of two contingent factors — dynamic capability and cognitive flexibility — and their interaction with diverse and cohesive networks shaping EO. Utilizing quantitative analysis of survey data from 165 firms, our findings unveil an underappreciated phenomenon: robust dynamic capabilities can counteract the diminishing returns associated with increasingly diverse and cohesive networks on EO. Furthermore, elevated cognitive flexibility serves as a balancing force against the decrease in EO advantages spurred by intensified cohesion within networks. Intriguingly, it also intensifies the negative repercussions of an overly diverse network on EO. Our research illuminates the complex tapestry of drivers within social networks, elucidating their roles as facilitators or barriers to EO, thus carving out new dimensions and trajectories for further investigation.