Despite evidence that embedded ties are important to entrepreneurs seeking low-cost
resources, no research to date has explored how this relationship unfolds in the context of
emerging organizations, how the inevitable dependence on ties might drive up resource
acquisition costs, or how the manner in which ties are embedded might affect the specificity
of these resources. We develop a conceptual model that examines these relationships and,
analyzing data from the Panel Study of Entrepreneurial Dynamics I, find support for the
majority of our hypotheses. We then discuss the implications of our findings for scholars
and practitioners.
I