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Assembling resources when forming a new business

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  • Ciabuschi, Francesco
  • Perna, Andrea
  • Snehota, Ivan

Abstract

Every business builds on a specific set of resources. New businesses in particular have to assemble external resources that are mostly new to them. This resource assembly requires developing business relationships with other actors that control and can provide the needed resources. Adopting a resource interaction perspective, this paper examines a case of a new business venture in the automobile industry. The case study shows that when forming a new business the actors possess only partial knowledge of how to assemble the resources. Consequently, the actors must engage in extensive adaptation and interaction with others to enact workable resource interfaces and combinations. This necessity makes the new business formation process nonlinear and onerous. Further, the case demonstrates that new business formation is a collective process involving not only the emergence of a formal business organization but also reorganizing the applicable resource market. Since third parties involved in developing the necessary resource combinations can be considered part of the new business venture, setting the boundaries of the new venture becomes arbitrary. The arbitrary nature of such boundary setting has implications in entrepreneurship studies with regard to the unit of analysis and the concept of opportunity.

Suggested Citation

  • Ciabuschi, Francesco & Perna, Andrea & Snehota, Ivan, 2012. "Assembling resources when forming a new business," Journal of Business Research, Elsevier, vol. 65(2), pages 220-229.
  • Handle: RePEc:eee:jbrese:v:65:y:2012:i:2:p:220-229
    DOI: 10.1016/j.jbusres.2010.11.029
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    References listed on IDEAS

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    Cited by:

    1. Natasha Evers & James A. Cunningham & Thomas Hoholm, 2016. "International entrepreneurship in universities: Context, emergence and actors," Journal of International Entrepreneurship, Springer, vol. 14(3), pages 285-295, September.
    2. Lars Huemer & Andrea Furlan, 2013. "Value logic interactions: perspectives on logistics service provider-client relationships," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2013(1), pages 35-51.
    3. Renato Fiocca & Ivan Snehota & Chiara Cantù, 2013. "Inter and intra organisational consequences of business relationships," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2013(1), pages 9-12.
    4. Kurnia, Sherah & Choudrie, Jyoti & Mahbubur, Rahim Md & Alzougool, Basil, 2015. "E-commerce technology adoption: A Malaysian grocery SME retail sector study," Journal of Business Research, Elsevier, vol. 68(9), pages 1906-1918.
    5. John Stayton & Vincent Mangematin, 2016. "Startup time, innovation and organizational emergence: A study of USA-based international technology ventures," Journal of International Entrepreneurship, Springer, vol. 14(3), pages 373-409, September.
    6. Irene Lehto, 2015. "International entrepreneurial selling as construction of international opportunities," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 277-302, September.
    7. repec:spr:intemj:v:14:y:2018:i:1:d:10.1007_s11365-017-0464-5 is not listed on IDEAS
    8. Gerschewski, Stephan & Rose, Elizabeth L. & Lindsay, Valerie J., 2015. "Understanding the drivers of international performance for born global firms: An integrated perspective," Journal of World Business, Elsevier, vol. 50(3), pages 558-575.
    9. Olga Mikhailova & Per Ingvar Olsen, 2016. "Internationalization of an academic invention through successive science-business networks: The case of TAVI," Journal of International Entrepreneurship, Springer, vol. 14(3), pages 441-471, September.
    10. Daniela Andreini & Giuseppe Pedeliento, 2013. "B2B vs. B2C: an empirical attempt to bridge the gap," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2013(1), pages 73-96.

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