Nascent Entrepreneurs Managing in Networks: Equivocality, Multiplexity and Tie Formation

Abstract

This paper studies the dynamics of network development in early phases of venture development. Seven ventures were studied through interviews and visualization techniques. An equivocal three-phase process was studied — conceptualization, early foundation and early establishment. This paper defines network equivocality, draw on multiplexity theory and contributes by fine-tuning the concept of tie formation. The paper presents a conceptual model where the dynamics behind network development in early phases of venture development is explained. It is proposed that each phase of development is divided by knowledge boundaries. As ventures mature, they pass knowledge boundaries, and this passage triggers network transformation. Thus, the roles of both nascent firms and of multiplex network contacts change, and consequently tie formation also change. Three distinct tie formations are identified; esoteric, enlarged and exoteric.