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Resource Acquisition in the Emergence Phase: Considering the Effects of Embeddedness and Resource Dependence

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  • Scott L. Newbert
  • Erno T. Tornikoski

Abstract

Despite evidence that embedded ties are important to entrepreneurs seeking low–cost resources, no research to date has explored how this relationship unfolds in the context of emerging organizations, how the inevitable dependence on ties might drive up resource acquisition costs, or how the manner in which ties are embedded might affect the specificity of these resources. We develop a conceptual model that examines these relationships and, analyzing data from the Panel Study of Entrepreneurial Dynamics I, find support for the majority of our hypotheses. We then discuss the implications of our findings for scholars and practitioners.

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  • Scott L. Newbert & Erno T. Tornikoski, 2013. "Resource Acquisition in the Emergence Phase: Considering the Effects of Embeddedness and Resource Dependence," Entrepreneurship Theory and Practice, , vol. 37(2), pages 249-280, March.
    • Handle: RePEc:sae:entthe:v:37:y:2013:i:2:p:249-280
    DOI: 10.1111/j.1540-6520.2011.00461.x
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    7. Smith, Claudia G. & Smith, J. Brock, 2021. "Founders' uses of digital networks for resource acquisition: Extending network theory online," Journal of Business Research, Elsevier, vol. 125(C), pages 466-482.
    8. Michael E. Cummings & Hans Rawhouser & Silvio Vismara & Erin L. Hamilton, 2020. "An equity crowdfunding research agenda: evidence from stakeholder participation in the rulemaking process," Small Business Economics, Springer, vol. 54(4), pages 907-932, April.
    9. Yan Li & Weiping Chen, 2023. "Acquisition and Utilization of Chinese Peasant e-Entrepreneurs’ Online Social Capital: The Moderating Effect of Offline Social Capital," Sustainability, MDPI, vol. 15(7), pages 1-16, April.
    10. David Bruce Audretsch & Maksim Belitski & Rosa Caiazza, 2021. "Start-ups, Innovation and Knowledge Spillovers," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1995-2016, December.
    11. Hans Löfsten, 2016. "New technology-based firms and their survival: The importance of business networks, and entrepreneurial business behaviour and competition," Local Economy, London South Bank University, vol. 31(3), pages 393-409, May.
    12. Greg Fisher & Emily Neubert, 2023. "Evaluating Ventures Fast and Slow: Sensemaking, Intuition, and Deliberation in Entrepreneurial Resource Provision Decisions," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1298-1326, July.
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    14. Patel, Pankaj C. & João Guedes, Maria & Pagano, Michael S. & Olson, Gerard T., 2020. "Industry profitability matters: The value of sustainable growth rate and distance from bankruptcy as enablers of venture survival," Journal of Business Research, Elsevier, vol. 114(C), pages 80-92.
    15. Sara Parry & Paul Westhead, 2016. "Mobilizing relationship marketing to ensure venture development in a rural resource-constrained bilingual context: The case of Draig Technology Limited," Working Papers 16002, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    16. Aki Harima & Fabrice Periac & Tony Murphy & Salomé Picard, 2021. "Entrepreneurial Opportunities of Refugees in Germany, France, and Ireland: Multiple Embeddedness Framework," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 625-663, June.
    17. Shi, Xianwei & Shi, Yongjiang, 2022. "Unpacking the process of resource allocation within an entrepreneurial ecosystem," Research Policy, Elsevier, vol. 51(9).
    18. James M. Bloodgood & Jeffrey S. Hornsby & Matthew Rutherford & Richard G. McFarland, 2017. "The role of network density and betweenness centrality in diffusing new venture legitimacy: an epidemiological approach," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 525-552, June.
    19. Deng, Ziliang & Wang, Zeyu, 2016. "Early-mover advantages at cross-border business-to-business e-commerce portals," Journal of Business Research, Elsevier, vol. 69(12), pages 6002-6011.

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