Making wine and making successful wineries.pdf

Propositions on resource development the critical

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Propositions on resource development The critical dimension that drives our model is the nature of the strategic issues and demands that are placed on a new venture at its stage of organizational development. New ventures must invest in resources that are consistent with their intended strategic 135 Making wine and making successful wineries Downloaded by Walden University At 08:05 13 November 2018 (PT)
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approach ( Andersen, 2011 ; Newbert et al. , 2007 ; Zahra et al. , 2006 ). But in addition, new firms experience different strategy-related challenges and problems at different stages of development ( Covin and Slevin, 1997 ; Kazanjian, 1988 ). The assembly of the right sets of resources to address stage-specific strategic issues is, thus, critically important for new ventures ( Levie and Lichtenstein, 2010 , p. 2896; Mishina, 2004, p. 2826). The findings among our 23 in-depth case studies suggest that a phased model is useful in understanding levels and configurations of resources needed by new ventures. The phases we explore more carefully herein are defined by the strategic challenges the new venture confronts and include names suggestive of resource development needs that new ventures experience as they progress from startup to a high level of self-sustaining activity: founding; leveraging; developing; and integrating. We emphasize that the classification of these dimensions represent stylized conditions that are useful for theoretical analysis, even though they oversimplify the nature of new venture development that lies along a continuum of the dimensions. The mapping of resource factors/types onto development phases reflects the contextual importance of resources when new ventures confront varying strategic challenges and is indicative of interactions among resources in any one phase of development. The strategic challenges confronting new ventures in the founding phase have to do with the articulation of the opportunity. Grand visions require grand plans and proactive efforts to understand how such plans can be put into play. Thus, varieties of knowledge may be important to new ventures. Knowledge resources encompass “know-how” and “know-what” ( Malecki, 1997 ) about markets and customers, innovation capabilities and dimensions of starting up new ventures ( Wright et al. , 1997 ). Wiklund and Shepherd (2003) identify varieties of procedural knowledge, including managerial knowledge and startup knowledge, that are critical for its subsequent development. But knowledge and ideas are inert without some other type of activation resource, and this is typically some level of financial support commensurate with the nature of the opportunity. In a similar vein, access to financial resources would be meaningless unless paired up with some idiosyncratically developed knowledge about a new opportunity. Together, these resources both frame and provide activity to further efforts to develop a new venture.
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  • Spring '14
  • Dr.SeanStanley
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