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The origins of capabilities : resource allocation strategies, capability development, and the performance of new firms
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Symeonidou, Noni, Leiponen, Aija, Autio, Erkko and Bruneel, Johan (2022) The origins of capabilities : resource allocation strategies, capability development, and the performance of new firms. Journal of Business Venturing, 37 (4). 106208. doi:10.1016/j.jbusvent.2022.106208 ISSN 0883-9026.
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Official URL: https://doi.org/10.1016/j.jbusvent.2022.106208
Abstract
Resource-constrained new ventures need to decide how to allocate their scarce resources to develop internal functional capabilities in order to survive and grow. Drawing on the longitudinal Kauffman Firm Survey of U.S. start-ups, we explore the performance implications of broad versus narrow scope in new firms' functional capability development and show that focus rather than breadth in capability development is conducive to higher revenue performance, although financial and knowledge resource availability moderate this relationship. Studying capability development in entrepreneurial firms informs our understanding of capability development in any firm competing under time and resource constraints.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
| Library of Congress Subject Headings (LCSH): | New business enterprises, New business enterprises -- Finance, Entrepreneurship, Success in business, Resource allocation , Resource allocation -- Decision making | ||||||||
| Journal or Publication Title: | Journal of Business Venturing | ||||||||
| Publisher: | Elsevier | ||||||||
| ISSN: | 0883-9026 | ||||||||
| Official Date: | July 2022 | ||||||||
| Dates: |
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| Volume: | 37 | ||||||||
| Number: | 4 | ||||||||
| Article Number: | 106208 | ||||||||
| DOI: | 10.1016/j.jbusvent.2022.106208 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 28 February 2022 | ||||||||
| RIOXX Funder/Project Grant: |
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