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Configurations of business founder resources, strategy, and environment determining new venture performance

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  • Jonas Debrulle
  • Paul Steffens
  • Koen W. De Bock
  • Sophie De Winne
  • Johan Maes

Abstract

We advance a configurational perspective that assumes a new venture’s performance, operationalized as profitability in this study, is determined by interdependencies among its founder(s)’s resources (i.e., human, social, and financial capital), its strategy, and environmental munificence. Using Rule Ensembles, a semiparametric set-theoretic method, we conduct an abductive investigation using a sample of 853 new ventures. The Rule Ensembles technique identifies five multivariate interdependencies (rules) that enhance new venture profitability and two that reduce it. Indicators of business founder resources are involved in all of the seven model rules. Four configurational rules, including a strategy and/or environmental component, equally emerge.

Suggested Citation

  • Jonas Debrulle & Paul Steffens & Koen W. De Bock & Sophie De Winne & Johan Maes, 2023. "Configurations of business founder resources, strategy, and environment determining new venture performance," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(2), pages 1023-1061, March.
    • Handle: RePEc:taf:ujbmxx:v:61:y:2023:i:2:p:1023-1061
    DOI: 10.1080/00472778.2020.1831807
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    Cited by:

    1. Siri Terjesen, 2021. "Entrepreneurial Finance: Research, Practice, and Policy for Post-Covid-19 Economic Recovery," JRFM, MDPI, vol. 14(1), pages 1-4, January.
    2. Du, Yunzhou & Kim, Phillip H., 2021. "One size does not fit all: Strategy configurations, complex environments, and new venture performance in emerging economies," Journal of Business Research, Elsevier, vol. 124(C), pages 272-285.
    3. Amirmahmood Amini Sedeh & Rosa Caiazza & Amir Pezeshkan, 2023. "Unraveling the resource puzzle: exploring entrepreneurial resource management and the quest for new venture success," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1552-1573, October.

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