Edinburgh Napier University

  Using a dynamic capability lens, we explore how entrepreneurs modify extant network ties to capture value from changes in their new venture social capital. To study these dynamics, we use international new ventures (INVs) as our theoretical and empirical context. Despite a well published body of literature on why social capital is important for new venture growth, it is unclear how such firms strategically manage changes in their social capital. Managing changes is particularly important, as social capital has been found to potentially harm new venture internationalization, but insight into this strategic management process is limited. To address this research problem, we take a micro activity-based view, and explore this process. We ask: How do entrepreneurs modify network ties and capture value from changes in INV social capital? Using longitudinal multiple case study research, our findings depict that entrepreneurs use eliminating ties, prioritising ties, and reconfiguring ties as activities to modify their extant network ties. Secondly, we reveal the entrepreneur’s choice and timing of these networking activities are important for capturing value. This paper contributes to the microfoundations of dynamic capabilities and the study of strategic change in entrepreneurial networks.