A widely held belief is that resource constraints and industry conditions can threaten the performance of entrepreneurial ventures. While previous research links resources to different performance outcomes, no research has explored the performance implications of resource use, especially for new ventures. Building from resource-based theory and contingency theory, we examine indirect (through capability formation/use) effects that occur within the ‘black box’ between resources and performance for a sample of entrepreneurial firms undertaking an IPO. Further, we extend theory in an entrepreneurial context to explain how underlying routines allow resources to be managed for greater value across different industries—conditions that make resources valuable in some contexts and not in others.
AWARDED THE IRENE M. MCCARTHY AWARD FOR THE BEST PAPER ON THE TOPIC OF HIGH TECHNOLOGY
Holcomb, Tim R.; Hitt, Michael; Ireland, R. Duane; and Certo, Trevis
"RESOURCES, INDUSTRY MEMBERSHIP, AND FIRM PERFORMANCE: THE ROLE OF CAPABILITY CONFIGURATIONS IN VALUE CREATION FOR IPO-STAGE NEW VENTURES,"
Frontiers of Entrepreneurship Research: Vol. 27
, Article 1.
Available at: http://digitalknowledge.babson.edu/fer/vol27/iss13/1