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Resources as dual sources of advantage: Implications for valuing entrepreneurial‐firm patents

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  • David H. Hsu
  • Rosemarie H. Ziedonis

Abstract

Why and how do resources provide sources of competitive advantage? This study sheds new light on this central question of resource‐based theory by allowing a single resource—entrepreneurial‐firm patents—to play distinctive roles in different competitive arenas. As rights to exclude others, patents serve a well‐known role as legal safeguards in product markets. As quality signals, patents also could improve access and the terms of trade in factor input markets. Based on the financing activities of 370 venture‐backed semiconductor start‐ups, we provide new evidence that patents confer dual advantages in strategic factor markets, improved access and terms of trade, above and beyond their added product‐market protection. The study has important implications for empirical tests of resource‐based theory and the measurement of resource value. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • David H. Hsu & Rosemarie H. Ziedonis, 2013. "Resources as dual sources of advantage: Implications for valuing entrepreneurial‐firm patents," Strategic Management Journal, Wiley Blackwell, vol. 34(7), pages 761-781, July.
    • Handle: RePEc:bla:stratm:v:34:y:2013:i:7:p:761-781
    DOI: 10.1002/smj.2037
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    Cited by:

    1. Annalisa Croce & Elisa Ughetto & Andrea Fronzetti Colladon, 2025. "Investment strategies of bank-affiliated and independent venture capitalists: a focus on innovation in the fintech sector in the wake of the global financial crisis," Review of Managerial Science, Springer, vol. 19(10), pages 2969-3012, October.
    2. Błaszczyk, Mateusz & Kwieciński, Leszek & Stawicka, Magdalena & Wróblewski, Marek, . "Przedsiębiorstwa w parkach technologicznych a paradygmat gospodarki opartej na wiedzy," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2017(1).
    3. Angelo Tomaselli & Salvatore Torrisi & Joris Ebbers, 2026. "Picking the right signals? Investor assessment of reputation signals of entrepreneurial teams and distributors in project-based enterprises," Small Business Economics, Springer, vol. 66(1), pages 175-194, January.
    4. Li Yuan & Jing Tao & Jun Sun & Jiachao Peng, 2025. "Does the green patent pre-examination program reduce environmental pollution?," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.
    5. Liu, Ziqi & O'Reilly, Seán & Hanly, Jim, 2025. "The role of accelerators in the success of cleantech firms," Technovation, Elsevier, vol. 148(C).
    6. Kim, Jongsoo & Kim, Yeongsu Anthony & Wei, Li-Qun & Zhou, Gaoguang, 2025. "Female entrepreneurs and international entry mode choice: Evidence from entrepreneurial firms in China," Journal of World Business, Elsevier, vol. 60(5).
    7. Bottaro, Carlotta & Cesaroni, Fabrizio & Fasano, Mattia & Staglianò, Raffaele, 2025. "Innovation, team creativity, and intellectual property in equity crowdfunding: a fuzzy and disaggregated approach," Finance Research Letters, Elsevier, vol. 86(PG).
    8. Verena Hossnofsky & Patrick-Peter Herold & Franziska Schlichte & Sebastian Junge, 2025. "Green signals of new ventures: investigating the impact of environmental orientation on funding and the moderating role of lead venture capitalists," Small Business Economics, Springer, vol. 65(3), pages 1791-1810, October.
    9. Zahlan, Ahmed, 2025. "Strategic resource mobilization for AI entrepreneurship in healthcare: Qualitative insights from startup founders," Technovation, Elsevier, vol. 145(C).
    10. Zhao, Qiuhan & Wu, Wei & Ge, Yuanqin & Xu, Jing, 2025. "Can intellectual property protection policy enhance enterprise innovation capability? Quasi-natural experimental study," International Review of Financial Analysis, Elsevier, vol. 103(C).
    11. Vilma Chila & Shivaram V. Devarakonda & Xavier Martin, 2025. "Pre-entry experience, knowledge inheritance, and entrepreneurial resource mobilization," Small Business Economics, Springer, vol. 65(1), pages 561-584, June.
    12. Saeid Mashhadi & Amirhossein Saghezchi & Vesal Ghassemzadeh Kashani, 2025. "Interpretable Machine Learning for Predicting Startup Funding, Patenting, and Exits," Papers 2510.09465, arXiv.org.
    13. Gong, Robin Kaiji & Li, Yao Amber & Manova, Kalina & Sun, Stephen Teng, 2025. "Tickets to the global market: First US patent award and Chinese firm exports," Journal of International Economics, Elsevier, vol. 157(C).
    14. Li, Yajing & Garg, Sam, 2025. "Balancing power: The role of independent directors on venture boards," Journal of Business Venturing, Elsevier, vol. 40(4).
    15. Massimo G. Colombo & Kourosh Shafi, 2026. "Firms’ venture capital affiliation, platforms’ “skin in the game” and the success of equity crowdfunding campaigns," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 53(1), pages 167-197, March.
    16. Radfard, Ali & Hassani, Sama & Pistilli, Luca, 2025. "The right to be known as knowing: how CEO political ideology shapes discrimination against female scientists," Journal of Business Research, Elsevier, vol. 201(C).
    17. Billington, Stephen D. & Colvin, Christopher L. & Coyle, Christopher, 2025. "Financing innovation: The role of patent examination," QUCEH Working Paper Series 25-01, Queen's University Belfast, Queen's University Centre for Economic History.
    18. Maksim Malyy & Zeljko Tekic & Tatiana Podladchikova, 2026. "Hey Google, how valuable is that startup? Internet search queries and new ventures’ valuation—insights from B2B and B2C sectors," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-26, December.
    19. Cai, Xinyue & Li, Peigong & Zhu, Wanwan, 2025. "Spatial proximity in venture capital investments and assets intangibility," International Review of Financial Analysis, Elsevier, vol. 106(C).
    20. Wang, Yu & Dong, Fan, 2025. "How intellectual property protection enhances data capitalization: The mediating effects of resources and willingness to capitalize on data," International Review of Financial Analysis, Elsevier, vol. 107(C).

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