Human Capital and New Venture Performance: The Moderating Role of Social Relations

With whom should entrepreneurs create their firms in order to enhance nascent venture performance? Conventional wisdom suggests that the stronger human capital and social relations in nascent venture teams are, the better the nascent venture’s performance. We draw from social embeddedness literature, however, and argue that the positive effect of team members’ human capital on three different dimensions of nascent venture performance is weaker when team members exhibit strong social relations. Our analysis of 488 nascent venture teams in the PSED II dataset confirms our predictions, showing that nascent ventures of teams with strong human capital but weaker social relations exhibit the best performance. The study thus offers valuable contributions particularly to literature on entrepreneurial teams the determinants of new venture performance.

The career resources model: An integrative framework for career counsellors

Changes in the nature of work and organizations have led to an increased need for self-directed career management (SDCM). However, there is no consensus in the literature of what constitutes SDCM and many related concepts have been proposed. Integrating previous research across different conceptualizations of SDCM, the paper proposes four critical career resources which are essential for career development in the modern context: human capital resources, social resources, psychological resources, and identity resources. Implications of this framework for counselling practice are presented.