Entrepreneurial Learning and Entrepreneurial Networks: Explorative Learning and Exploitative Learning, Formal Network and Informal Network

Abstract

Entrepreneurial learning is the reaction to others’ behavior under specific network and entrepreneurial process. Entrepreneurial network has been built during the growth process of new enterprise. Although entrepreneurial learning is an important mean to transform and utilize the tacit knowledge contained in entrepreneurial network, little research has focused on how different entrepreneurial learning (explorative learning and exploitative learning) would impact the relationship between the two typical entrepreneurial networks (formal network and informal network) effects on the growth performance of new ventures, which resulted that it’s unable to guide entrepreneurship practice well. This paper analyzes formal and informal entrepreneurial network’s impact on new venture growth performance along with explorative and exploitative entrepreneurial learning’s influence on that process. Empirical tests found that both different types of entrepreneurial network and entrepreneurial learning have a positive impact on the growth performance of new ventures, and explorative learning help to the positive impact of formal entrepreneurial network effectively on growth performance of new ventures.

Keywords: Entrepreneurial Learning, explorative learning, exploitative learning, formal network, informal network