Abstract

The growth of entrepreneurial enterprises is the process of constructing，maintaining，and managing external networks. There has been research on entrepreneurial networks focusing on the overall structure of the network，or the analysis of network resources and relationships along a single connection perspective，however little has been examined on the characteristics and content of the connection portfolio. Yet industrial observations show that startups are very focused on constructing a combination that is suitable for their own survival and growth，rather than on resource acquisition through a single chain. Recent research on entrepreneurial networks points out that a link may be useful for start-ups，but the overall connection portfolio plays a more important role in improving the performance of entrepreneurial enterprises. The portfolio means the simultaneous establishment of multiple connections，rather than single connections established in turn，and the portfolio achieves synergy across the connections. Therefore，effective management of external network connection portfolio is an important means for the rapid growth of entrepreneurial enterprises. How to upgrade from a single-link relationship management to a network management of connection portfolio is a hot topic in theoretical and practical fields.

This book is based on resource dependence theory，network theory，transaction cost theory etc.，with connection portfolio as the analysis unit. The research design combines first-hand data and second-hand data，that is，the typical enterprise investigation according to rooted theory and the coding of announcement from alliances of listed companies. This book interprets the resource composition，governance mechanism and evolution process of the connection portfolio through the synergy effect，rather than the independent role of a single connection.

From the perspective of resource composition，constructing an appropriate connection portfolio enables the enterprises facing resource constraints to grow through the resource matching effect. However，the existing research is restrained to analyze the portfolio composition through subject diversity，and does not provide a reasonable explanation for “how to construct different connection portfolio to create different resource matching effects”. In this regard，the book interprets the constituent characteristics of the connection portfolio from the perspective of the subject and the connection method，and analyzes its impact on resource matching effect. Using embedded case study method，this study finds that establishing a repetitive connection to an enterprise outside the system with resource diversity and accessing the enterprise within the system enable the startup enterprise to obtain resource matching between repetitive connection，indirect connection and direct connection. Establishing a closed connection to enterprises within the system with complementary resources enables the startup to obtain resource matching from inside and outside the closed connection. Establishing a direct and strong connection to enterprises outside the system with concentrated resources and constructing a connection portfolio rich in structural holes help to stimulate resource matching between the direct connections.

From the perspective of the governance mechanism，the choice and application of governance methods can help maximize the economic exchange value of the connection portfolio and minimize the governance cost of this complex exchange relationship. This book uses listed companies from the Growth Enterprise Board（GEM）as research sample，and obtains data on the alliance portfolio of GEM listed companies through encoding second-hand data of the listed company’s annual report and alliance announcement. Using large-scale statistical tests，the study found that establishing alliances with companies from different industries and enterprises with different institutional attributes cannot directly reflect the improvement of the performance of startup enterprises. Entrepreneurial performance can only be improved when entrepreneurs manage their diversified，especially institutionally diversified alliance portfolios in the form of equity governance. The research reveals the manageable characteristics of the connection portfolio and shows that the synergy of the connection portfolio is not in its complex architecture per se，but in its ability to manage it appropriately.

From the evolution perspective，the research on entrepreneurial network mainly focuses on the static structure and content，whereas the discussion of the dynamic process and its driving behavior is limited. This book uses the exploratory case study method to analyze the process of establishing a connection portfolio of entrepreneurial enterprises and promoting its evolution. The study found that the evolution of the entrepreneurial network connection portfolio depends on the entrepreneurial enterprise’s implementation of a series of entrepreneurial actions from relationship contact to relationship communication，and from relationship debugging to relationship establishment. Along with the evolution of the combination of entrepreneurial networks，different connected subjects in the portfolio experience the process from cognitive matching to operational matching and to strategic matching，among which relationship transfer plays an important role. The transfer effect of entrepreneurs’ previous relationship affects relationship communication and debugging，and the new network connection is brought about by the transfer effect of new relationship，which drives further network embedding.

In summary，this book reveals the composition of the connection portfolio from its quality rather than quantity，and explores the resource matching characteristics of the essence of the connection portfolio rather than the diversity of the connected subject. This book also explores the governance of the connection portfolio of entrepreneurial enterprises from the perspective of governance cost and how to shape the management ability to achieve the governance. It also breaks through the periodic evolution of the entrepreneurial network focusing on the time dimension，and analyzes the evolution process and mechanism of the connection portfolio in the subject，resource and relationship dimension. The purpose of this book is to reveal the unique content and management rules of the connection portfolio of high uncertainty and resource inequality，which enriches the theoretical interpretation of the content，process and governance of the entrepreneurial network.

Keywords：Tie Portfolio；Resources Fit；Network Governance