Abstract

This paper develops and tests a model that incorporates the social networks of individual entrepreneurs, the interorganizational networks of their firms, and entrepreneurial behaviour. In a transnational context the dynamics embedded in these relationships are likely to be affected by the density of these networks. A less dense local network makes access to networks in other countries or regions more important. Technological developments have enhanced information transfer, but there are political, social, cultural and economic factors embedded in national or regional borders that inhibit this tendency toward freer flows of information. In a time of growing international interdependence, borders can be viewed as constraints to the free flow of information and access to social and technical interorganizational networks that are so important to the encouragement of entrepreneurship.