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Household entrepreneurship and social networks:panel data evidence from Vietnam

Huu Chi Nguyen () and Christophe Nordman
Additional contact information
Huu Chi Nguyen: University of Paris North, UMR DIAL

No DT/2014/22, Working Papers from DIAL (Développement, Institutions et Mondialisation)

Abstract: (english) Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. One first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on the business technical efficiency. The assumption is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realize a lower output than what could be possible with the same amount of resources. We find evidence of a productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We stress the importance of professional networks for successful entrepreneurship. _________________________________ (français) En utilisant un panel de microentreprises familiales au Vietnam, cet article met en relation le réseau social des entrepreneurs et de leur ménage avec la performance de la microentreprise familiale. Nous abordons deux questions connexes. La première examine la possibilité d'effets différenciés de l'emploi des membres de la famille par rapport à des travailleurs recrutés sur le marché du travail sur la performance de la microentreprise. Une deuxième question aborde les effets respectifs des différentes dimensions des réseaux sociaux sur l'efficience technique de la microentreprise. L'hypothèse testée est que, au-delà du canal de la productivité du travail, les entrepreneurs qui sont confrontés à un environnement social défavorable pourraient produire moins efficacement et réaliser une valeur ajoutée plus faible que ce qui pourrait être possible avec la même quantité de ressources. Nous montrons qu'il existe en effet un différentiel de productivité entre le travail familial et le travail recruté sur le marché, et nos résultats attestent de la présence d'effets défavorables du réseau social pour certains ménages gérant une microentreprise. Nous soulignons aussi l'importance des réseaux professionnels pour la réussite de l'entreprenariat familial.

Keywords: Family labour; Kinship and ethnic ties; Sharing norms; Social network capital; Informality; Household business; Panel; Vietnam. (search for similar items in EconPapers)
JEL-codes: D13 D61 O12 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2014-11
New Economics Papers: this item is included in nep-ent, nep-sea, nep-soc and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://dial.ird.fr/wp-content/uploads/2021/10/201 ... nce-from-Vietnam.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam (2018) Downloads
Working Paper: Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam (2018)
Working Paper: Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam (2017) Downloads
Working Paper: Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam (2017) Downloads
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