Handbook of Research on High-Technology Entrepreneurs
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Handbook of Research on High-Technology Entrepreneurs

Edited by Ayala Malach-Pines and Mustafa F. Özbilgin

This comprehensive Handbook presents an extensive overview of empirical and conceptual developments in the study of high-tech entrepreneurs from an interdisciplinary and multinational perspective.
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Chapter 20: Social Networks and High-tech Entrepreneurs: The Power of Networks and How to Put it to Use

Yossi Dashti


20 Social networks and high-technology entrepreneurs: the power of networks and how to put it to use Yossi Dashti Introduction Israeli high-technology entrepreneurs (HTEs) and ventures have exhibited an outstanding level of activity and success. Due to Israel’s small size and limited market, it is essential for Israeli high-technology (high-tech) companies to operate in global markets. As a result, many ventures opt to move their operations to the US. As the venture goes through the process aimed at achieving success – from conception through venture creation, expansion and reward realization – social networks play an important role in providing support and assistance in multiple aspects. The current study focused on the networks of Israeli-founded high-tech ventures that operate in the US. An attempt was made to explore the relationships of social networks (network diversity, perceived importance of networks, network size, contacts’ accessibility, and contacts’ power to influence) to the success of the ventures. Israeli high-technology start-ups Since the beginning of the 1990s, Israel has experienced rapid growth in the high-tech sector (Schwartz and Bar-El, 2007) and has an unusually large number of high-tech entrepreneurs and ventures (Pines et al., 2004). According to Israel’s Ministry of Industry, Trade and Labor (MOIT, 2004), in 2003 there were over 4,000 high-tech start-up companies in Israel. The environment that has enabled and promoted the rise of Israeli high-tech start-up companies is rooted in the necessity to provide sophisticated technology to meet Israel’s defense needs. A number of factors facilitated the emergence of Israeli high-tech startups,...

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