'What matters is on the inside' - An exploratory study of the internal social network of a start-up

Abstract: Networks have been found to be a key factor of performance and innovation as they allow for the search and transfer of knowledge. Networks have been perceived to be especially important in start-ups, due to the dynamic environments and limited resources available. Although networks have been used as a central concept in start-up literature, little actual network theory has been used. Consequently, there is little insight on what type of characteristics the internal networks of start-ups have. However, internal networks have been explored in mature companies but since these have different organizational characteristics, such as age and size, it is unclear whether the findings of these can be transferred to a start-up context. Therefore, the thesis conducts an exploratory study of a start-up, in order to compare the findings with mature network characteristics to distinguish between differences and to analyze which of the networks is more efficient at knowledge transfer. A mixed-method approach was used to conduct the social network analysis of the start-up. The findings show that the start-up differed in metrics dependent on age, such as tie strength, but that density of networks was more dependent on the size of the organization, as smaller networks irrespective of age were more dense and cohesive. The start-up network was more symmetrical and reciprocal than the mature networks, yet tie strength was lower as the fostering of relationships takes time. In conclusion, the findings demonstrated that start-up networks are not inherently unique and some similarities can be seen with mature networks. Furthermore, start-up networks cannot be said to be superior in knowledge transfer, as the trade-off between the cohesive network displayed by start-ups, and the mature networks exhibiting structural holes and stronger ties, is dependent on the complexity of projects and aims of each organization.