The transformation of network ties to develop entrepreneurial competencies for university spin-offs

Social networks are integral to the emergence and development of new ventures, but the temporal utility of networks is poorly understood. We consider the initial development of four university spin-offs and examine the formation and development of network ties to construct valuable entrepreneurial competencies. We develop a conceptual framework that explains how strong and weak network ties are strategically transformed in terms of strength and purpose depending on the type of competency sought and the business development need. We conclude that theoretical explanations of the new venture formation process need to incorporate not only network formation but also the role of network tie transformations.