Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators

Despite a surge of studies examining the role of social capital in the entrepreneurial process, no quantitative assessments exist of the empirical evidence to date. To resolve seemingly conflicting results, we conducted a meta-analysis of the link between entrepreneurs' personal networks and small firm performance and identify new moderators affecting this relationship. Analyses of 61 independent samples indicated that the social capital–performance link was positive and significant (rc=.211). Effect sizes of weak ties were smaller than those of structural holes, while network diversity had the largest positive effect on performance. Results also showed that the social capital–performance link depends on the age of small firms, the industry and institutional contexts in which they operate, and on the specific network or performance measures used. Based on these findings, we develop recommendations for future research on the contingent value of social capital for small firms. ► We conduct a meta-analysis on the performance effects of entrepreneurs' social capital. ► Network diversity has the largest positive effect on small firm performance. ► Effect sizes of weak ties are smaller than those of structural holes. ► Social capital's effects are moderated by firm, industry, and country characteristics. ► Effect sizes depend on the network and performance measures that are used.