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Entrepreneurship, Dynamic Capabilities and New Firm Growth

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  • Petra Gibcus
  • F. Stam
  • Jennifer Telussa

Abstract

This paper applies the dynamic capability framework to the study of new firm growth. Using a longitudinal database of 354 firms over their first ten years, we provide an explanation of new firm growth in terms of new product development, R&D, inter-firm alliancing, and exporting, activities that have been identified as denoting dynamic capabilities. In addition, an overview of empirical studies on employment growth in new firms is provided. The empirical evidence for this study shows that general firm resources have a much stronger effect on growth than the dynamic capabilities measured here (mainly inter-firm alliancing). High levels of human capital of the entrepreneur or resourcemunificence of the firm does not improve the value of dynamic capabilities for growth. Environmental dynamism ? a supposed boundary condition of the dynamic capability approach ? is not revealed to be a moderating factor on the effect of dynamic capabilities on new firm growth.

Suggested Citation

  • Petra Gibcus & F. Stam & Jennifer Telussa, 2006. "Entrepreneurship, Dynamic Capabilities and New Firm Growth," Scales Research Reports H200623, EIM Business and Policy Research.
  • Handle: RePEc:eim:papers:h200623
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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H200623.pdf
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    Cited by:

    1. Hwan Jin Kim, 2018. "Reconciling Entrepreneurial Orientation and Dynamic Capabilities: A Strategic Entrepreneurship Perspective," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 180-208, September.
    2. Darshana Mudalige & Noor Azizi Ismail & Marlin Abdul Malek, 2016. "Exploratory Study on Relationship between Entrepreneur Characteristics and Dynamic Capabilities in Export SMES," Paradigm, , vol. 20(2), pages 113-130, December.

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