Sociology in business : a study on the role of social network in the start-up success of brick-and-mortar versus online retailing in Singapore.

Abstract

Entrepreneurs utilize their social network in order to obtain resources required for the start-up of their businesses. It has been suggested that the strength of tie utilized in obtaining certain resources plays a role in influencing the start-up success of small businesses. However, limited research has been conducted on the role of social network in the successful start-up of an online retail portal. This exploratory study studies the role that social network has on the start-up success of twelve fashion retail shops in Singapore. The interviews find that online retails stores are more likely to utilise their social network to obtain resources in skilled labour support (e.g. photographer, models and web designer) while brick-and-mortar stores are more likely to utilise their social network in obtaining financial resources and business contacts with regards to choice of shop location. Also, despite pursuing different resources, successful entrepreneurs across both channels have similar traits in their utilisation of ties and existing links in their social networks.