Contact

University of Maryland
R.H. Smith School of Business
4558 Van Munching Hall
College Park, MD 20742

Phone: 301.405.9495
Email: bhallen@rhsmith.umd.edu
Department webpage

Education

PhD in Strategy, Organizations, and Entrepreneurship - Stanford University (MS&E)
M.C.S. in Computer Science - University of Virginia
B.S. in Electrical Engineering - University of Virginia
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Published Research

The Causes and Consequences of the Initial Network Positions of New Organizations: From Whom do Entrepreneurs Receive Investments
Administrative Science Quarterly (December 2008)
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Abstract:
This paper examines the mechanisms by which organizations establish their initial network positions, or sets of network ties. Although there has been significant research on the evolution of organizational network positions, how a new organization establishes its original network position has received more limited attention. I attempt to redress this imbalance using two competing logics, one based on the previously developed network ties and human capital of a new organization's founders and the other based on a new organization's early accomplishments. I test these logics in a study of venture capitalists and other investment organizations forming investment ties with (e.g., investing in) 92 Internet security ventures. In contrast to the literature on network position evolution, I find that new organizations take multiple paths to their initial network positions, with which path an organization takes being determined by when it forms its first ties.

Working Papers

Catalyzing Strategies: How Entrepreneurs Accelerate Inter-Organizational Relationship Formation to Secure Professional Investments
Joint with Kathleen Eisenhardt (Stanford University)
Currently under review
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Abstract:
Although inter-organizational relationships are crucial for new organizations, the behavioral strategies that entrepreneurs actually use to form such relationships are relatively unexplored. Building on fine-grained field data from 9 Internet security ventures receiving equity investments from professional investors, we induct a theoretical framework that addresses how entrepreneurs overcome the tendency of potential partners to wait to commit. Specifically, entrepreneurs successfully form relationships when they engage in four catalyzing strategies: they casually date potential partners in advance (not approaching potential partners when a tie is needed), synchronize pursuing relationships with proofpoints of progress (not timing around resource needs), actively create competition by crafting credible alternatives (not passively waiting for potential partners to commit), and focus on realistic potential partners by scrutinizing interest (not taking professed interest at face value). Collectively, these catalyzing strategies accelerate relationship formation by unlocking the value of network ties and information signals. Overall, our study contributes a more textured view of successful entrepreneurial relationship formation to the literature on inter-organizational relationship formation. Moreover, our findings suggest a duality to network ties and information signals, such that their value lies intertwined in the simple possession of such ties and signals and the concurrent use of complementary catalyzing strategies.


The Purchase of Embeddedness: Can Venture Capital Firms Buy Their Way Into Networks?
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Abstract:
This paper examines the extent to which organizations can form new network ties by offering more favorable deal terms and quicker partnership evaluations to potential partners. Although there has been considerable research on inter-organizational network tie formation, this research has tended to emphasize the importance of previously formed network ties and affiliation-based status. In contrast to these factors that are largely beyond an organization's short-term control, I explore the extent to which organizations may “purchase” their network embeddedness using the more immediate levers of favorable deal terms and evaluation speed. Integrating a social exchange/equity logic and a signaling logic, I argue that both an organization's relative deal terms and its partnership evaluation speed have a curvi-linear (inverted-U) relationship with the organization's formation of new network ties. Using 3,166 reviews in which anonymous entrepreneurs rated the relative deal terms and evaluation efficiency of 477 U.S.-based venture capital firms, I test and find support for this argument. Overall, I contribute to the inter-organizational network dynamics literature the insight that organizations are highly limited in their ability to “purchase” embeddedness, as attempts at doing so may be seen as counter-productive signals of desperation and lower-quality.


Can Entrepreneurs Believe Their Impressions of Venture Capitalists? Does it Matter? Entrepreneur Evaluations and Network Safety Nets
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Abstract:
This paper examines the ability of entrepreneurs to accurately evaluate potential organizational exchange partners. Although there has been significant research on how experienced actors use social network ties, status, and information signals to accurately evaluate potential partners, relatively little attention has been given to the abilities of less-experienced actors to accurately evaluate potential partners. I attempt to redress this gap by integrating two distinct logics. First, building on cognitive psychology research into the limitations of novice problem solvers, I argue that entrepreneurs are generally poor evaluators of an alter's partnership abilities. Second, and building on social network research into the knowledge and influence of network brokers, I then argue that entrepreneurs may nonetheless be guided towards better alters by their network brokers. I test and find support for these logics in a study of 9,722 entrepreneurs posting anonymous evaluations of 569 venture capitalists to an online forum. Overall, I find that even though entrepreneurs may often be limited in their ability to directly evaluate potential partners, intermediating brokers may act as "network safety nets" that save entrepreneurs from their own limitations.