Racializing business networks: a study of the impact that social capital has on African American and White-dominated business networks
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Abstract
The purpose of this study is to examine the effects that social capital has on racializing business networks. Racializing business networks refers to business networks in which all or the majority of its members are from one ethnic group or the goals of the networks are specifically designed for economic development/success for a particular ethnic group. I examine the differences between White-dominated and African American business networks in four mid-Western states (Iowa, Ohio, Minnesota, and Nebraska) using Portes and Sensenbrenner four components of economic social capital. The four components of economic social capital are value introjection, reciprocity transaction, bounded solidarity, and enforceable trust, which made up the four hypotheses for this study. Qualitative and quantitative methods were used to obtained the data and test the hypotheses. The qualitative data indicates that African American business networks have more value introjection, bounded solidarity, and reciprocity transaction than the White-dominated business networks. The quantitative data (using correlation matrix, t-tests, and regression models) indicates that White-dominated business networks have more enforceable trust than African American business networks. Limitations for the study and future recommendations are also included.