When Form Leads to Function: Network Closure and Social Identity Threat Among Women Entrepreneurs

We contend that the degree of closure in women entrepreneurs’ social networks affects how concerned they feel about being judged through the lens of negative gender stereotypes (i.e., their experience of social identity threat). Using data from a survey of entrepreneurs in Study 1, we observe that women (but not men) entrepreneurs who report more closure in their social networks experience less social identity threat. Study 2 shows that the trust that is inherent in closed social networks accounts for our effects. Using an experimental design, we find that a field sample of entrepreneurs who are assigned to develop a closed (vs. open) network experience more trust, which is associated with reduced social identity threat for women (but not men). Our findings suggest that a closed social network may inoculate women against the risk of being derailed by negative stereotypes in the venture creation process. We conclude by discussing the theoretical and practical implications of our findings.