Abstract:
There is little empirical evidence on the issue of whether the relationship strength in entrepreneurial networks (RSENs) facilitates tacit knowledge transfer (TKT), and if so, whether incubator/accelerator affiliation affects the relationship between RSENs and TKT. The purpose of this paper is to understand how the startups affiliated to incubator/accelerator (private/public/private-public) are able to improve their innovation capability. This study examines various relationships within the empirical context of Indian manufacturing and service startups. We empirically provide some evidence that formal RSEN influences the extent of TKT, and hence, the innovation capability. The results support that startups in formal entrepreneurial networks gain more if they have public-private incubator/accelerator affiliation. To our knowledge, this is the first attempt to link RSENs to the TKT in the national system of innovation literature. This study also contributes to our understanding of entrepreneurial networks in a non-Western context, i.e., India. In terms of practical implication, it is not only entrepreneurial networks that play an important role in TKT, but also their relationship strength. Hence, we argue that TKT in entrepreneurial networks may be a source of critical competitive advantage for startups in the 21st century. In addition, results provide implication for developing relationship with the members in networks for tacit knowledge. These implications have the potential to direct the policy initiatives.