Dear readers of this blog,
Last week we started the new course ‘Entrepreneurship and Networks’ and therefore I want to provide you with some information regarding that topic and will illustrate the importance of networks by given an example of my grandfather’s company.
First of all it has to be mentioned that a network is a set of actors connected through ties which can be strong or weak and can improve the outcomes of actions. Furthermore entrepreneurs should not underestimate the fact that management in a network is more important than management of a network.
In 1970 my grandfather and his former colleague founded a metal construction company, combining special knowledge in marketing and business administration with technical and engineering skills. Nowadays they employ more than 100 people and have a big regional influence in the sector of engineering and metal construction. As we know from Hoang and Antoncic (2003) networks support entrepreneurial effectiveness by providing access to resources and give competitive advantages without any capital investment. In the case of my grandfather the network to his colleague was immense important and the outcome was in fact the new business venture. The business contacts both of them made in their former career and the special knowledge both of them obtained over time resulted in the first business orders. My grandfather knew the world of business administration and engineering perfectly while on the other side his colleague had the technical skills and the contacts to talented employees. Both of them profited from each other and put together their resources to found one of the biggest metal construction companies in the region, resulting in building the Mercedes Benz Museum and the Airport in Southern Germany, just to mention the most famous projects. When you look at the network the company has nowadays, you can see strong and weak ties all along Germany and even internationally.
I hope I could give you a short insight about how networks can result in business creation. Next week I will blog about morphology and diagnosis of my own network.
Keep you posted 😉 all the best