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IT IS WHAT YOU KNOW: CHANGES IN THE STRUCTURE AND ROLE OF ENTREPRENEUR NETWORKS IN AN INDUSTRY OVER TIME _______________________________________ A Dissertation presented to the Faculty of the Graduate School at the University of Missouri-Columbia _______________________________________________________ In Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy, Agricultural & Applied Economics _____________________________________________________ by ANNETTE KENDALL Dr. Randall Westgren, Dissertation Supervisor MAY 2019 The undersigned, appointed by the dean of the Graduate School, have examined the dissertation entitled IT IS WHAT YOU KNOW: CHANGES IN THE STRUCTURE AND ROLE OF ENTREPRENEUR NETWORKS IN AN INDUSTRY OVER TIME presented by Annette Kendall, a candidate for the degree of doctor of philosophy, and hereby certify that, in their opinion, it is worthy of acceptance. _____________________________________________ Professor Randall Westgren _____________________________________________ Professor Michael Sykuta _____________________________________________ Professor Andre Ariew _____________________________________________ Professor Peter Foreman _____________________________________________ Professor Sarah Low Acknowledgements I would like to acknowledge and thank everyone who has supported me in this project, particularly in the last six months. Firstly, of course, my husband Brendan, and son Cameron. Again, thank you for your continued support and incredible patience as I persistently insist on doing what I want. There’s probably no-one else on this planet that would put up with me like you both do. The NAMA crew, old and new. You guys have been a continued source of sunshine, laughter, and authenticity these last few months. You should all be walking across the stage with me in May because without you rising to the challenge of working on your own for a while, this would have been a much harder road. My research supervisor, Professor Randall Westgren, and my long-suffering committee. Thank you all for understanding my creative, and somewhat frustrating, self and not making a big deal out of the fact that I changed my entire research question and design four months ago. And finally, as always, Professor Hamish Gow, who set in motion this entire journey, and without who I would never have landed here. In the words of Douglas Adams, “I may not have gone where I intended to go, but I think I have ended up where I needed to be.” Statement of Academic Integrity I declare that this research report is entirely my own work. When the ideas, quotations, data and diagrams of others have been used in the report, the work has been properly cited in the text. ________________________________________ _________________________ Signature Date ii Contents Acknowledgements .......................................................................................................................... ii List of Tables .................................................................................................................................. vi List of Figures ................................................................................................................................ vii Abstract ........................................................................................................................................... ix Preface ............................................................................................................................................. 1 Chapter 1 - Introduction ................................................................................................................... 7 If entrepreneurship is lonely, innovation is lonelier .................................................................. 13 Importance of this study............................................................................................................. 15 Research questions & setting ..................................................................................................... 17 Contribution to Literature .......................................................................................................... 19 Structure of this dissertation ...................................................................................................... 20 Chapter 2 – Literature review ........................................................................................................ 22 The entrepreneurial process ....................................................................................................... 23 The role of entrepreneurial social capital ................................................................................... 24 Dimensions of social capital ...................................................................................................... 27 The relationship between social capital dimensions .................................................................. 34 Relationship between structural and relational dimensions ................................................... 35 Relationship between structural and cognitive dimensions ................................................... 36 Relationship between relational and cognitive dimensions ................................................... 37 Establishing legitimacy .............................................................................................................. 38 Network analysis as a research method for exploring the relationships between social capital dimensions ................................................................................................................................. 42 Structural social capital .......................................................................................................... 44 Relational social capital ......................................................................................................... 47 Cognitive social capital .......................................................................................................... 48 Establishing legitimacy .......................................................................................................... 49 Chapter 3 – Conceptual model ....................................................................................................... 51 Structural social capital effects .................................................................................................. 52 Relational social capital effects ................................................................................................. 54 iii Cognitive social capital effects .................................................................................................. 54 Legitimacy as an outcome of network structure and role .......................................................... 55 Chapter 4 - Research design .......................................................................................................... 58 Research Method ....................................................................................................................... 58 Sample Choices .......................................................................................................................... 60 Quantitative ............................................................................................................................ 60 Qualitative .............................................................................................................................. 62 Data Collection .......................................................................................................................... 63 Ethical and Cultural Issues ......................................................................................................... 67 Analysis Technique .................................................................................................................... 67 Quantitative ............................................................................................................................ 68 Qualitative .............................................................................................................................. 74 Chapter 5 – Artisan cheese in the U.S. .......................................................................................... 76 A brief history of handmade cheese in the U.S. ......................................................................... 76 1975-89: Experimentation, empowerment, innovation, creation and naïveté ........................ 80 1990-99: A little more guidance and a few additional resources ........................................... 86 2000-09 Cheese as a tool for economic development ............................................................ 87 2010-18 Balancing art and science ........................................................................................ 89 Case Studies ............................................................................................................................... 93 Chapter 6 – Empirical Results ..................................................................................................... 104 Structural social capital ............................................................................................................ 105 Network correlations and regressions .................................................................................. 105 Network