|M.Sc Student||Koren Avital|
|Subject||Competitive Strategy, Corporate Social Capital and|
Performance of Start-Up Firms Founded in Israeli
|Department||Department of Industrial Engineering and Management||Supervisors||Mr. Avi Fiegenbaum (Deceased)|
|Professor Paul Feigin|
The current research extends the understanding of the relationships that exists between a firm’s corporate social capital in terms of its network characteristics and strategy and their effect on performance. The research sample consisted of 32 start-up firms founded in Israeli technological incubators. The first hypothesis relates firm network and performance: (1a) the bigger a firm’s network size, the higher its performance; (1b) The stronger firm’s network ties, the higher its performance. The second hypothesis relates firm strategy and performance: the more multidimensional the firm’s strategy, the higher its performance. The third hypothesis focuses on the interaction effect of firm strategy and network and its impact on performance: (3a) the more externally oriented a firm’s competitive strategy, the more organic its social network will be; (3b) The better the fit between a firm’s strategy and its social network, the higher its performance will be, and (3c) the better the fit between a firm’s strategy and its social network, the higher its performance will be. Research results generally support hypotheses. More specifically, in regard to the first hypothesis, social network strength and size were found to have a significant affect the firm’s number of fund raisings. In regard to the second hypothesis, firm’s competitive strategy was found to effect performance as measured by the ability to attract investors. Finally, it is the interaction effect of both firm network and strategy that have found to affect performance namely, firm’s network size was found to have a significant effect on the firm’s growth performance through an interaction with the capabilities building of a firm’s competitive strategy.