Abstract

In this study, we empirically explore the broader impact of resourcefulness on the entrepreneurship process by asking: How does early resourcefulness among new firms affect performance? In answering this question, we build on the Penrose’s (1959) work emphasizing the versatility of resources, which has been underutilized in favor of variance-oriented resource theory. In developing our theoretical model, we classify two types of resourcefulness: resource versatility—flexible use and deployment of limited resources—and bootstrapping—use of creative methods for “meeting the need of resources without relying on long-term external finance from debt holders and / or new owners” (Winborg & Landström, 2001).

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