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Social Capital and the Linkages of High-Tech Companies to the Military Defense System: Is there a Signaling Mechanism?

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Abstract

This study investigates linkages of new Israeli high-tech companies to the military and defense system. We examine the impact of social capital, signaling, and learning spillovers on resource acquisition in terms of investments and the financial performance of companies with and without linkages. Social capital, signaling, and learning spillovers are examined as they impact individual and organizational resource acquisition and performance of 200 new Israeli high-tech companies. The study contributes to the existing literature of entrepreneurship by suggesting the relevance of knowledge spillovers, signaling theory and social capital to the context of the interface between defense and civilian spheres.

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Authors and Affiliations

  1. School of Business and Economics, Wilfrid Laurier University, N2L3C5, Waterloo, Ontario, Canada

    Benson Honig

  2. The School of Management and Economics, The Academic College of Tel-Aviv-Yaffo and the Faculty of Management, Tel Aviv University, Israel

    Miri Lerner

  3. The Interdisciplinary Center for Technological Analysis and Forecasting, Tel Aviv University, Ramat Aviv, Israel

    Yoel Raban

Authors
  1. Benson Honig
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  2. Miri Lerner
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  3. Yoel Raban
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Honig, B., Lerner, M. & Raban, Y. Social Capital and the Linkages of High-Tech Companies to the Military Defense System: Is there a Signaling Mechanism?. Small Bus Econ 27, 419–437 (2006). https://doi.org/10.1007/s11187-005-5644-y

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  • DOI: https://doi.org/10.1007/s11187-005-5644-y

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