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How and Why Do Firms Differ at Start-Up? A Resource-Based Configurational Perspective

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Author Info

  • A. HEIRMAN

    ()

  • B.T CLARYSSE

    ()

  • V. VAN DEN HAUTE

Abstract

This paper studies what initial resource endowments new organizations assemble and the interaction between initial resources, entrepreneurial orientation and environmental factors. More specifically, we study the initial resources of research-based start-ups (RBSUs), which are defined as new firms that develop and market new products or services based upon a proprietary technology or skill. Using a unique hand-collected dataset of RBSUs in Belgium, we empirically test how technological, financial and human resources relate to each other to form distinct starting resource configurations. We find four different types of starting configurations: “Venture Capital-backed start-ups,” “Prospectors,” “Product start-ups” and “Transitional start-ups”. This study shows that these different types of starting resource configurations are not only empirically distinct but can also be conceptually explained by internal factors such as the entrepreneurial orientation at start-up and external factors such as the origin of the firm and the characteristics of the industry in which the firm competes.

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File URL: http://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_03_198.pdf
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Bibliographic Info

Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 03/198.

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Length: 50 pages
Date of creation: Sep 2003
Date of revision:
Handle: RePEc:rug:rugwps:03/198

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Related research

Keywords: innovation; resource configuration; resource-based view; start-ups;

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References

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  1. G. Page West III, 2001. "The Achilles Heel of Firm Strategy: Resource Weaknesses and Distinctive Inadequacies," Journal of Management Studies, Wiley Blackwell, vol. 38(3), pages 417-442, 05.
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  3. Hellmann, Thomas & Puri, Manju, 2000. "The Interaction between Product Market and Financing Strategy: The Role of Venture Capital," Review of Financial Studies, Society for Financial Studies, vol. 13(4), pages 959-84.
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  7. Thomas Hellmann & Manju Puri, 2002. "Venture Capital and the Professionalization of Start-Up Firms: Empirical Evidence," Journal of Finance, American Finance Association, vol. 57(1), pages 169-197, 02.
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  9. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
  10. Macmillan, Ian C. & Siegel, Robin & Narasimha, P. N. Subba, 1985. "Criteria used by venture capitalists to evaluate new venture proposals," Journal of Business Venturing, Elsevier, vol. 1(1), pages 119-128.
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Cited by:
  1. O'Shea, Rory P. & Allen, Thomas J. & Chevalier, Arnaud & Roche, Frank, 2005. "Entrepreneurial orientation, technology transfer and spinoff performance of U.S. universities," Research Policy, Elsevier, vol. 34(7), pages 994-1009, September.
  2. Oliver Hugo & Elizabeth Garnsey, 2005. "Problem-solving and competence creation in the early development of new firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 139-148.

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