Entrepreneurial entry: The role of social media

Wei Wang; Qiaozhuan Liang; Raj V Mahto; Wei Deng; Stephen X Zhang

doi:10.1016/j.techfore.2020.120337

Entrepreneurial entry: The role of social media

Technol Forecast Soc Change. 2020 Dec:161:120337. doi: 10.1016/j.techfore.2020.120337. Epub 2020 Sep 29.

Authors

Wei Wang¹, Qiaozhuan Liang¹, Raj V Mahto², Wei Deng¹, Stephen X Zhang³

Affiliations

¹ School of Management, Xi'an Jiaotong University, No.28, Xianning West Road, Xi'an, Shaanxi 71004, China.
² Anderson School of Management, The University of New Mexico, Albuquerque, NM, USA.
³ University of Adelaide, Adelaide SA, Australia.

Abstract

Despite the exponential growth of social media use, whether and how social media use may affect entrepreneurial entry remains a key research gap. In this study we examine whether individuals' social media use influences their entrepreneurial entry. Drawing on social network theory, we argue that social media use allows individuals to obtain valuable social capital, as indicated by their offline social network, which increases their entrepreneurial entry. We further posit the relationship between social media use and entrepreneurial entry depends on individuals' trust propensity based on the nature of social media as weak ties. Our model was supported by a nationally representative survey of 18,873 adults in China over two years. As the first paper on the role of social media on entrepreneurial entry, we hope our research highlights and puts forward research intersecting social media and entrepreneurship.

Keywords: Entrepreneurial action; Entrepreneurial entry; New venture creation; Social media; Social network; Trust propensity.