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Abstract This study explores the relationship between the strength of network ties and organizational legitimacy in the new ventures, and further explores how entrepreneurial institutional environments moderate the relationship between the strength of network ties and organizational legitimacy based on signaling and institutional theories. The findings from a survey of 165 new ventures in Xi’an High Tech Industrial Development Zone indicate that the strength of network ties positively affects firm legitimacy. It is more beneficial when the regulatory dimension of entrepreneurial institutional environments is low while the normative dimension is high. The study concludes with a discussion of the theoretical contributions and managerial implications for understanding the contingent value of tie strength on firm legitimacy.
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Received: 13 May 2016
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