Evolutionary Processes and Paths of Relationally Embedded Network Ties in Emerging Entrepreneurial Firms

Relationally embedded network ties influence the economic decisions of emerging firms and evolve over time. Evolutionary processes and paths of these ties are examined based on two research questions: How do components of social relationships facilitate the evolution of relational embeddedness? What are the different paths to relational embeddedness? Findings from qualitative case study methods suggest three evolutionary processes (network entry, social component leverage and trust facilitation), four evolutionary paths, and the conclusion that ties entering the network through personal relationship may evolve more quickly toward full embeddedness. Strategic implications for emerging firms are suggested regarding entrepreneurial opportunity recognition, resource acquisition and effective governance of relationally embedded ties.