Search results

Considering the unique characteristics of equity crowdfunding platforms including the removal of stringent structural barriers (e.g. lack of co-location), high visibility and traceability of investor characteristics, large pool of available investors and simplified transaction process, the authors aim to examine how the two most prevalent mechanisms (i.e. homophily and repeated ties) unfold in this context by incorporating the contextual characteristics. The authors theorize an inverted U-shaped relationship between leader-backer similarity and the likelihood of co-investment in a syndicate on equity crowdfunding platforms. In addition, a leader–backer dyad is more likely to form new syndicates if the students have more prior co-investment ties.

The empirical study is based on data from the AngelList syndicate platform and a linear probability model (LPM) with fixed effects is adopted to estimate the syndicate formation.

The authors find that the similarity between a leader and a backer has an inverted U-shaped relationship with the leader and backer's likelihood of co-investment in a syndicate, which is different from the dominant homophily-based tie formation in venture capital (VC) syndicates and other digital platform contexts. Although equity crowdfunding platforms encourage the possibility of exploring new partners, investors are more likely to co-invest with others who have stronger prior ties.

This research theoretically contributes to the scant literature of equity crowdfunding syndicates by contextualizing two most prevalent mechanisms (i.e. homophily and repeated ties) driving tie formation in VC syndicates and digital platforms.

This study aims to not only develop measurements of preferential attachment and homophily mechanisms based on their definitions and network theory but also examine the associations among these network mechanisms, community commitment, knowledge sharing and community citizenship behavior.

In total, 250 valid questionnaires are collected to examine the hypothesized associations. These hypotheses are examined by using partial least squares structural equation modeling.

The findings reveal both mechanisms are beneficial to develop new entrants’ emotional attachment to a virtual community, thereby motivating knowledge sharing and community altruistic behavior. The results contribute some practical and theoretical implications that are very helpful for the conceptualization of network mechanisms, community development, relationship management and incentives for extra-role behavior.

The literature on the link between network selection mechanisms and knowledge sharing remains unknown. This study is the pioneer to disclose this unknown association and examine the impacts of preferential attachment and homophily network mechanisms.

The purpose of this paper is to explore the influence of five dimensions of similarity (i.e. condition similarity, context similarity, catalyst similarity, consequence similarity and connection similarity) on Facebook social networks development.

A questionnaire-based survey was conducted with 245 Romanian college students. SmartPLS 3 statistical software for partial least squares structural equation modeling was chosen as the most adequate technique for the assessment of models with both composites and reflective constructs.

More than 52 percent of the variance in social network development was explained by the advanced similarity model. Each dimension had a positive effect on Facebook social networks development, the highest influences being exerted by condition similarity, context similarity and consequence similarity.

The current approach is substantively based on the homophily paradigm in explaining social network development. Future research would benefit from comparing and contrasting complementary theories (e.g. the rational self-interest paradigm, the social exchange or dependency theories) with the current findings. Also, the research is tributary to a convenience-based sample of Romanian college students which limits the generalization of the results to other cultural contexts and, thus, invites further research initiatives to test the model in different settings.

Similarity attributes and mechanisms consistently determine the dynamics of online social networks, a fact which should be investigated in depth in terms of the impact of new technologies among young people.

This study is among the first research initiatives to approach similarity structures and processes within an integrative framework and to conduct the empirical analysis beyond US-centric samples.

The purpose of this study is to discuss how ethnicity and gender influence high-tech entrepreneurship in the Cambridge cluster emphasizing homophily and how and why bridging and bonding ties are created in moving individuals from the periphery to cross the threshold into acceptance.

The authors present findings on the micro-dynamics of ethnicity and gender in high-tech entrepreneurship underpinned by homophily. The authors discuss how ethnicity and gender influence who enters and stays in high-tech entrepreneurship university spinouts. Through an entrepreneurial narrative qualitative approach, the authors explore how and why bridging and bonding ties may be created and the challenges for those at the periphery to cross the threshold into acceptance. The study adopts an entrepreneurial narrative qualitative approach using interviews with individuals associated with the Cambridge cluster.

The authors add to the entrepreneurship literature by responding to the call for multiplexity within homophily, and the research indicates that homophily strongly influences who enters and who leaves the cluster based on bridging and bonding ties. The findings address the need for more focused understanding of entrepreneurial clusters and how mechanisms can be developed to create an environment to nurture both bridging and bonding ties. It is possible for an entrepreneurial cluster to be perceived as attractive and thriving while being homophilous. Ethnic individuals and women continue to struggle to gain acceptance in the Cambridge cluster.

Interviews were conducted by one person – an ethnic minority female – for continuity of all interviews. Yet as many of the participants were not minorities, it is possible that an interviewer who was not an ethnic minority may have elicited different narratives.

The study adds to the entrepreneurship literature by focusing on multiplexity within homophily in examining the dynamics of homophily in the context of the Cambridge cluster and the significance of nurturing bridging and bonding ties. The research comments on implications for practice among three interlinked but autonomous groups: first, the individual entrepreneurs; second, the networks she/he belongs to; third, the university as both fertile ground for entrepreneurship and an educational institution where entrepreneurship education is engaged in for encouraging and supporting spinouts.

Purpose: This chapter aims: (a) to extend biased net models of homophily to complete networks; (b) to extend the scope of application of these models to processes of social exchange in a small-group laboratory setting; and (c) to link the theoretical model of attraction and repulsion with a standard statistical model of logistic regression as a way of estimating and evaluating the model.

Methods: We discuss the logic of biased net theory and show how it leads to formal mathematical models of tie formation and tie renewal under mechanisms of attraction and repulsion. We then estimate key theoretical parameters in the models by means of logistic regression.

Findings: The estimated effects of homophily in our models are moderate in strength, weaker than corresponding reciprocity effect, and processes of tie formation and tie renewal are driven more by considerations of direct reciprocity than group membership. Under attraction, homophily effects are stronger for tie renewal than tie formation. Under repulsion, the opposite holds.

Limitations: Participants in our study are divided into two groups based on a criterion that is likely to have been too weak to induce strong group identity. Measures that enhance the sense of group identity need to be introduced in future studies.

The purpose of this paper is to examine the effects that reference prices and associated information sources (websites that consumers use to explore and their friends who have similar perspectives on value) have on deal evaluation and intention to disseminate electronic word of mouth (eWOM).

A stratified survey is conducted to empirically test the relations between reference prices, associated information sources (the top five Consumer-to-consumer (C2C) websites and top five Facebook friends with similar perspectives and values on consumption), deal evaluation, and eWOM intention. The study uses a Facebook API to help participants pick five Facebook friends to act as their favorite sources for advice on shopping.

The results suggest that consumers’ deal evaluations (as shaped by the recency effects of previous exposure to prices and the influence of Facebook friends and C2C websites) have carry-over effects on their eWOM intentions. The influence of Facebook friends and C2C websites on deal evaluation is as powerful as that of reference price, especially concerning the mean and the lowest prices.

The findings encourage marketers to invest their resources in targeting online groups, and suggest that C2C website marketers should set their offer prices between the mean and the lowest prices.

This study extends prior research on the motives for eWOM dissemination and elaborates an approach to initiate eWOM intention through deal evaluation.

The purpose of this study is to understand how employees of an organization build and maintain successful business relationships by analyzing major antecedents of relationship quality and relationship commitment.

In this study, the authors develop a conceptual framework and formulate hypotheses regarding the relationships between demographic homophily, interpersonal communication, trust and dependent variables of perceived relationship quality and relationship commitment. This paper tests hypotheses presented in this study with the help of a structural equation model, based on a data sample from South Korea.

Unlike common thinking, demographic homophily does not directly increase the perceived relationship quality. The authors find a significant direct effect of interpersonal communication on relationship commitment but no effect of commitment on perceived relationship quality. Both seem to play independent roles but are positively influenced through the emergence of trust.

By applying demographic homophily and interpersonal communication as antecedents and trust as mediator and main driver, the authors research effects on perceived intra-organizational relationship commitment and perceived relationship quality. In detail, the authors confirm the hypothesized centrality of trust in intra-organizational relationships between demographic homophily, interpersonal communication and dependent variables of perceived relationship quality and relationship commitment. Nevertheless, the authors surprisingly find neither significant evidence that demographic homophily increases the perceived quality of a relationship, nor does it lead to higher communication intensity directly, even in an environment (i.e. Korea), where it would be expected.

Based on the findings of this study, there are several practical implications. Understanding the interpersonal relationship characteristics in an intra-organizational setting enables managers to optimize organizational efficiency and effectiveness. Intra-organizational relationships between employees’ are highly dependent on mutual trust as an indicator for relationship quality and relationship commitment. Organizations can also benefit from the understanding of the mechanisms of demographic homophily and interpersonal communication for the establishment of interpersonal trust as well.

Research about the effect of demographic homophily and interpersonal communication and the central role of trust in an intra-organizational approach to business relationships on perceived relationship quality and relationship commitment is scarce. The mutual testing of the effects and interaction of established constructs like demographic homophily, interpersonal communication and trust on perceived relationship quality and commitment constitutes the main contribution of this study to the literature on management and business relationships. The insights of this study about interpersonal bonding help companies to establish long-term business relationships.

Recent labor market research has called into question whether social capital effects are causal, or are spuriously due to the influence of social homophily. This essay adopts the demand-side perspective of organizations to examine the causal status of social capital. In contrast with supply-side approaches, we argue that homophily is a key mechanism by which organizations derive social capital. We develop an approach to bolster inferences about the causal status of social capital, and illustrate these ideas using data from a retail bank.

The authors investigate whether matchings in equity crowdfunding are more likely to happen if homophily exists between investors and investees. They focus on gender, age and geographical proximity as crucial dimensions of similarity among individuals and thus of homophily. Furthermore, they investigate whether the effect of homophily depends on the risk of opportunism, which investors allegedly attribute to proponents basing on their area of residence.

The authors analyze a hand-collected database of 13 equity crowdfunding campaigns launched by Italian innovative start-ups from January 2013 to June 2016, which includes information about 384 equity crowdfunding investments carried out by 361 different investors.

The authors find a significant effect of geographical proximity and age similarity in explaining the probability that an investor finances a campaign. Moreover, these effects are particularly relevant if the proponent is located in areas characterized by a high risk of opportunistic behavior. Interestingly enough, they do not detect any significant effect related to gender.

In this paper, the authors have the unique opportunity to analyze a whole market (the Italian market) during three years, from inception (2013–2016), and to collect the identities of the investors in all successful campaigns.

The purpose of this paper is to investigate the moderating effect of homophily between trust in social media influencers (SMIs) and credibility of the post in influencer marketing by incorporating the similarity attraction theory (SAT) and analysing the effect of trust in SMIs on online purchase intention and credibility of the post. This study also explored the mediating role of influencers’ credibility of the post between trust in SMIs and online purchase intention.

The data were collected from 417 respondents in Jaipur, India, using an online questionnaire via Google Forms. A convenience sampling technique was employed to collect the data. Partial least squares structural equation modelling (PLS-SEM) was used to test the proposed hypotheses with the help of SmartPLS version 4.

The results exhibit a positive and significant influence of trust in SMIs on credibility of the post and online purchase intention. Also, this study found a positive and significant relationship between credibility of the post and online purchase intention. Additionally, credibility of the post had a positive and significant mediation role in the relationship between trust in SMIs and online purchase intention. In addition, homophily positively moderated the relationship between trust in SMIs and credibility of the post.

The findings of this study can be used by marketing professionals working in the e-commerce industry to ensure their continued in success using the right influencers for their specific target audiences and help them create and implement more effective promotional strategies, increasing brand awareness, announcing sales, using them for creative content and so on.

Until now, there has been no study in the Indian context that has tested the moderation effect of homophily between the trust in SMIs and credibility of the post by incorporating the SAT, according to the researchers’ knowledge. Furthermore, this novel piece of research explored the relationship between trust in SMIs and online purchase intention with credibility of the post as a mediator.