摘要:The social network theory acts as thread across the different stages and tests the quality of the relations. We are confident to present a multi-leveled and dynamic analysis about the entrepreneurial activity of the clothes boutiques in Shanghai.
ons.
Legitimacy is an important factor to the survival of a business.In order to survive, a firm must conform to the authorities and prevailing rules and belief systems in the environment. The conformation to these rules and beliefs will earn the organization legitimacy (Suchman, 1995). Usually, enterprises experience pressures in host and home institutional environments, which exert fundamental influences on their management (Rosenzweig and Singh, 1991; Zaheer, 1995). Organisations able to obtain the legitimacy can survive and get access to the neede resources, otherwise they fail. On one hand, social, economic, and political factors constitute an institutional structure of a particular environment, which can be the source of pressure. On the other hand, the spacial institutional structure provides firms with advantages for engaging in specific types of activities there.
Busenitz, Gomez & Spencer (2000) categorized regulatory, cognitive, normative institutions. Regulatory institution refers to the system formed by laws, rule and policies for or against the entrepreneurial activity; the cognitive ones include the facilities for entrepreneurs to obtain techniques and knowledge. And the normative institutions refer to beliefs and values of the nation and its people. It is believed that firms in different types of economies react differently to similar challenges.
In short, the institutional theory is a powerful tool to illustrate the social, cultural influence onto a company. It is also very helpful for us to understand the external social network for a business.
The last one, social network theory. We make a more detailed review of this theory in the next part.
2.4Social Network Theory
Just as every enterprise is in the net of institutions, it is a general agreement that entrepreneurs and new companies must engage in networks to survive (Huggins 2000).
Entrepreneurial activity is the enterprising human action in pursuit of the generation of value. As the above-mentioned theories have pointed out, all enterprises and their owner live in a certain socioeconomic context. Their knowledge and capability are the bases of entrepreneurial activities in the identification and exploitation of opportunities and resources, which are needed for the creation, management, development or expansion of the enterprise.
The process of a single entrepreneurial activity includes 3stages: the forming stage of motivation and initiative, the preparation stage of opportunity identification, and the earlier development stage of the company.
Within the external social economic environment, researchers take the social network theory as the tool to scrutinize the influence of social network on the opportunity resources, information and management of the enterprise, going through and relating the developing process of a company.
It is interesting to see the different function of the same theory in different economies and social background. Different economies and social background generate different social networks for enterprises in economies at different stages and with different features. Researchers long ago studied the relationship between the types of economy and their influence on the enterprenuer’s ability to make use of the social network.
It is also generally accepted that entrepreneurs make use of the benefits of economic efficiency that networks facilitate (Szarka 1990)
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