Abstract

The central premise of the resource management perspective (Sirmon, Ireland, & Hitt, 2007) in resource-based theory contends that resources must be actively managed in dynamic environments to produce superior economic performance over the long-run. However, before resources can be actively bundled and leveraged to create economic value, the firm’s resource portfolio must be actively structured through external acquisition, internal accumulation, and/or through the divestment of key resources (Sirmon et al., 2007). Among early-stage technology-based ventures, prior research argues that this resource structuring process is directly influenced by the availability of financial capital in the venture (Lee, Lee, & Pennings, 2001; Shane & Stuart, 2002).

While prior research has explored a variety of factors which shape the supply of financial capital in ventures (Lee et al., 2001; Shane & Stuart, 2002), prior research has been largely silent regarding the extent to which various manifestations of environmental dynamism affect the capitalization process. To address this gap in the literature, we explore the extent to which two specific types of environmental uncertainty—technological and demand uncertainty—moderate the effects of initial resource endowments—managerial and technological resources—on three specific capitalization outcomes in early-stage ventures.

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