Resource-Based Paths Sample Clauses

Resource-Based Paths. ‌‌ In this chapter, I focus on resource endowments to denote entrepreneurial growth paths. Once a person decides to exploit a technology-based opportunity by launching a company, he needs to acquire certain resources. Following chapter 2.1.4, a technology- based new venture requires a foundational technology and a business idea, financial resources, and employees with highly specialised human capital. Assuming that the entrepreneur provides the idea, the start-up still needs the technology, funding, and a highly skilled team. As indicated in chapter 2.2.3, start-up companies require entrepreneurial capabilities to establish this initial resource base. As soon as these resources are acquired, the new venture needs to develop dynamic capabilities with respect to its current resource endowments. These capabilities are necessary to manage and further develop the initial resource base. In chapter 2.2.3, I identified different capabilities that are necessary to grow an entrepreneurial venture. According to the initial resource base, technology-based new ventures will initially focus on the development of dynamic capabilities in the field of financial management, human resource management, and strategic planning. Although I assume that entrepreneurial firms will initially focus on the development of capabilities that enables them to manage their resource base in the best way, I expect some start-ups to need more time to establish dynamic capabilities in these fields than other firms. Firms that are slow in developing these capabilities face a competitive disadvantage since they encounter a period where they are not able to manage their initial resource base in the best possible way. Hence, I formulate the following three hypotheses.