Disentangling the value of multiple types of intra-incubator information, advice and referral networks among co-located entrepreneurs

In this exploratory quantitative paper, we study multiple types of informal peer networks among entrepreneurs in incubators. First, we study three types of direct ties: 1) ideas for product development; 2) information about market trends; and 3) advice about how to manage one’s firm. Second, we study four types of referral ties about potential new: 1) customers; 2) suppliers; 3) personnel; and 4) investors. Third, we study the value of each of these networks from the perception of founders. Fourth, we study which kind of entrepreneurs create – rather than derive – value by being the source of information, advice and referrals. Finally, when studying these networks, we take into account a range of firm, founder and context specific effects including firm size, firm age, entrepreneurial experience, and incubation time. Our paper contributes to the literature by comparing the value of different types of informal peer networks among new ventures founders. Although we study this in the context of incubators, some of our findings are likely to be generalizable to peer networks among entrepreneurs.