Networking and Entrepreneurial Activity in Kuwait

Chapter
Part of the Advances in Theory and Practice of Emerging Markets book series (ATPEM)

Abstract

This study examines socializing and networking practices in Kuwait known as the diwaniyas. Diwaniyas are physical spaces where people gather regularly to discuss, among other things, politics, business, history, and/or matters of everyday life. The thesis put forward is that participation in the social establishment of diwaniyas favors the acquirement of social, cultural, and symbolic capital. This, in turn, fosters entrepreneurialism and increases opportunities and activities that can be converted into economic capital. The importance of this social infrastructure as a vehicle to help deliver the capital required for entrepreneurial activity is also highlighted.

Keywords

Entrepreneurship Social capital Diwaniyas Kuwaiti culture 

References

  1. Acs, Z. J., Lee, S. Y., & Florida, R. (2004). Creativity and entrepreneurship. Regional Studies, 38, 879–891.Google Scholar
  2. Adler, P. S., & Kwon, S.-W. (2002). Social capital: Prospect for a new concept. Academy of Management Review, 27, 17–40.Google Scholar
  3. Aldrich, H., & Fiol, M. (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19(4), 645–670.Google Scholar
  4. Aldrich, H., & Zimmer, C. (1986). Entrepreneurship through social networks. In D. L. S & Smilor (Eds.), The art and science of entrepreneurship (pp. 3–23). New York, NY: R. Cambridge.Google Scholar
  5. Al-Ghabrā, S. (1995). Al-Kuwayt: Dirāsa fī Aliyāt al-Dawla al-Qutrīya 51. Cairo, Egypt: Dar Alamin.Google Scholar
  6. Alhajeri, A. (2010). The development of political interaction in Kuwait through the “Dīwānīyas” from their beginnings until the year 1999. Journal of Islamic Law and Culture, 12(1), 24–44.Google Scholar
  7. Anderson, A. R., & Miller, C. J. (2003). ‘Class matters’: Human and social capital in the entrepreneurial process. The Journal of Socio-Economics, 32(1), 17–36.Google Scholar
  8. Arenius, P., & Minniti, M. (2005). Perceptual variables and nascent entrepreneurship. Small Business Economics, 24(3), 233–247.Google Scholar
  9. Arregle, J. L., Batjargal, B., Hitt, M. A., Webb, J. W., Miller, T., & Tsui, A. S. (2015). Family ties in entrepreneurs’ social networks and new venture growth. Entrepreneurship Theory and Practice, 39(2), 313–344.Google Scholar
  10. Audretsch, D.B., Keilbach, M.C. and Lehmann, E.E. (2006). Entrepreneurship and Economic Growth, New York:Oxford Universitry Press.Google Scholar
  11. Belliveau, M. A., O’Reilly, C. A., III, & Wade, J. B. (1996). Social capital at the top: Effects of social similarity and status on CEO compensation. Academy of Management Journal, 39, 1568–1593.Google Scholar
  12. Beverland, M. B. (2005). Crafting brand authenticity: The case of luxury wines. Journal of Management Studies, 42(5), 1003–1029.Google Scholar
  13. Bitektine, A. (2011). Toward a theory of social judgments of organizations: The case of legitimacy, reputation, and status. Academy of Management Review, 36(1), 151–179.Google Scholar
  14. Bourdieu, P. (1986). The forms of capital. In J. G. Richardson (Ed.), The handbook of theory and research for the sociology of education. New York, NY: Greenwood Press.Google Scholar
  15. Bourdieu, P. (1993). The field of cultural production, or: The economic world reversed. In R. Johnson (Ed.), The field of cultural production: Essays on art and literature (pp. 29–73). Cambridge: Polity Press.Google Scholar
  16. Bowey, J. L., & Easton, G. (2007). Entrepreneurial social capital unplugged: An activity-based analysis. International Small Business Journal, 25(3), 273–306.Google Scholar
  17. Burt, R. S. (1997). The contingent value of social capital. Administrative Science Quarterly, 42, 339–365.Google Scholar
  18. Casson, M. C. (1982). The entrepreneur: An economic theory. Oxford, UK: Martin Robertson.Google Scholar
  19. Chay, C. (2016). The dīwāniyya tradition in modern Kuwait: An interlinked space and practice. Journal of Arabian Studies., 6(1), 1–28.Google Scholar
  20. Coleman, J. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94(Supplement), S95–S120.Google Scholar
  21. Cousins, P., Handfield, R., Lawson, B., & Petersen, K. J. (2006). Creating supply chain relational capital: The impact of formal and informal socialization processes. Journal of Operations Management, 24(6), 851–863.Google Scholar
  22. De Clercq, D., & Voronov, M. (2009). Toward a practice perspective of entrepreneurship: Entrepreneurial legitimacy as habitus. International Small Business Journal, 27(4), 395–419.Google Scholar
  23. Deephouse, D. L., & Carter, S. M. (2005). An examination of differences between organizational legitimacy and organizational reputation. Journal of Management Studies, 42(2), 329–360.Google Scholar
  24. Fischer, E., & Reuber, R. (2007). The good, the bad, and the unfamiliar: The challenges of reputation formation facing new firms. Entrepreneurship Theory and Practice, 31(1), 53–75.Google Scholar
  25. Forbes. (2015). Silicon Gulf? Kuwait moves beyond oil to nurture entrepreneurs. Available from: https://www.forbes.com. Accessed 5 June 2017.
  26. Greve, A., & Salaff, J. W. (2003). Social networks and entrepreneurship. Entrepreneurship Theory and Practice, 28(1), 1–22.Google Scholar
  27. Harvey, C., Maclean, M., Gordon, J., & Shaw, E. (2011). Andrew Carnegie and the foundations of contemporary entrepreneurial philanthropy. Business History, 53(3), 425–450.Google Scholar
  28. Holmes, T. J., & Schmitz, J. A. (1990). A theory of entrepreneurship and its application to the study of business transfers. Journal of Political Economy, 98, 265–294.Google Scholar
  29. Hunt, S., & Dennis, B. A. (2003). Resource-advantage theory and Embeddedness: Explaining RA Theory’s explanatory success. Journal of Marketing Theory and Practice, 11(1), 1–17.Google Scholar
  30. Jack, S., & Anderson, A. (2002). The effects of embeddedness on the entrepreneurial process. Journal of Business Venturing, 17(5), 467–487.Google Scholar
  31. Jonsson, S., & Lindbergh, J. (2013). The development of social capital and financing of entrepreneurial firms: From financial bootstrapping to bank funding. Entrepreneurship Theory and Practice, 37(4), 661–686.Google Scholar
  32. Kirzner, I. M. (1973). Competition and entrepreneurship. Chicago, IL: University of Chicago Press.Google Scholar
  33. Knight, F. H. (1921). Risk, uncertainty, and profit. New York, NY: Augustus M. Lelley.Google Scholar
  34. Kostova, T., & Roth, K. (2003). Social capital in multinational corporations and a micro-macro model of its formation. Academy of Management Review, 28, 297–317.Google Scholar
  35. Kuwait News Agency. (2016). [Online]. Diplomats: Kuwait Diwaniyas are Mini Parliaments. Available from: http://alqabas.com. Accessed 20 May 2017.
  36. Lange, D., Lee, P. M., & Dai, Y. (2011). Organizational reputation: A review. Journal of Management, 37(1), 153–184.Google Scholar
  37. Lawrence, T. B. (2004). Rituals and resistance: Membership dynamics in professional fields. Human Relations, 57(2), 115–143.Google Scholar
  38. Lefebvre, H. (1992). The Production of Space (trans: Nicholson-Smith). United Kingdom: Editions Anthropos.Google Scholar
  39. Light, I. H., & Gold, S. J. (2000). Ethnic economies. San Diego, CA: Academic Press.Google Scholar
  40. Lucas, R. E. (1978). On the size distribution of firms. Bell Journal of Economics, 9, 508–523.Google Scholar
  41. Lounsbury, M. and Glynn, M.A. (2001). Cultural entrepreneurship: Stories, legitimacy, and the acquisition of resources. Strategic Marketing Journal, 22(6-7), 545–564.Google Scholar
  42. McLeod, C., O’Donohoe, S., & Townley, B. (2009). The elephant in the room? Class and creative careers in British advertising agencies. Human Relations, 62(7), 1011–1039.Google Scholar
  43. Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital and the organizational advantage. Academy of Management Review, 23, 242–266.Google Scholar
  44. Neira, I., Portela, M., Cancelo, M., & Calvo, N. (2013). Social and human capital as determining factors of entrepreneurship in the Spanish regions. Investigaciones Regionales, 26, 115–139.Google Scholar
  45. Orban, A., & Szanto, Z. (2005). Társadalmi tőke. Erdélyi Társadalom, 3(2), 55–70.Google Scholar
  46. Pret, T., Shaw, E., & Dodd, S. (2016). Painting the full picture: The conversion of economic, cultural, social and symbolic capital. International Small Business Journal, 8, 1004–1027.Google Scholar
  47. Putnam, R. (1993). The prosperous community: Social capital and public life. American Prospect, 13, 35–42.Google Scholar
  48. Putnam, R. (2000). Bowling alone: The collapse and revival of American community. New York, NY: Simon and Schuster.Google Scholar
  49. Reuber, A. R., & Fischer, E. (2005). The company you keep: How young firms in different competitive contexts signal reputation through their customers. Entrepreneurship Theory and Practice, 29(1), 57–78.Google Scholar
  50. Rooks, G., Klyver, K., & Sserwanga, A. (2014). The context of social capital: A comparison of rural and urban entrepreneurs in Uganda. Entrepreneurship Theory and Practice. Epub ahead of print 21 April. https://doi.org/10.1111/etap.12107.
  51. Scarce, J. (1985). The evolving culture of Kuwait (p. 48). Edinburgh, Scotland: Royal Scottish Museum.Google Scholar
  52. Schumpeter, J. A. (1911). Theory of economic development. An investigation entrepreneur winning over, capital, credit, interest rate and the business cycle. Berlin, Germany: Duncker and Humblot.Google Scholar
  53. Terjesen, S., & Elam, A. B. (2009). Transnational entrepreneurs’ venture internationalization strategies: A practice theory approach. Entrepreneurship Theory and Practice, 33(5), 1093–1120.Google Scholar
  54. The National Fund. (2017). Vision and Mission. Available from: http://nationalfund.gov.kw. Accessed 5 June 2017.
  55. Useem, M., & Karabel, J. (1986). Pathways to top corporate management. American Sociological Review, 44, 184–200.Google Scholar
  56. Van der Gaag, M. and Snijders, T. (2004). Proposals for the measurement of indvidual social capital. In Flap, H. and Volker, B Eds., Creation and returns of social capital. A new research program. Routledge, London.Google Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Gulf University for Science and TechnologyMubarak Al-AbdullahKuwait
  2. 2.Swansea UniversitySwanseaUK

Personalised recommendations