Making wine and making successful wineries.pdf

New firms need to develop knowledge physical

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New firms need to develop knowledge, physical, financial, social, human, organizational and technological resources to succeed in their efforts. As firms evolve over time, they confront new strategic and competitive challenges in a manner calling for additional investments in phase-appropriate resources. While early success at vinifera growing is contingent upon access to localized knowledge sources, it is apparent IJOA 24,1 140 Downloaded by Walden University At 08:05 13 November 2018 (PT)
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that other resources are crucial for subsequent stages where more detailed and systematic knowledge is crucial. Without access to professionalized information, smaller wineries can become stifled and introspective in their techniques, institutionalizing flaws rather than mitigating them. It is a complex two-way interaction, as for appropriate resources to be attained by individual firms, the collective reputation of the local industry must grow in such a way as to legitimize incumbents and further the demand for their products. It is this legitimacy building that invariably emerges when clusters of firms cooperate in a geographic location, exchanging tacit knowledge, facilitating generalized information exchange and encouraging specialist firms that service the industry to co-locate ( Taplin, 2011 ). The phases presented in our model are indicative of such legitimacy building inasmuch as wineries that are likely to prosper are ones whose resource bundles most facilitate knowledge access and technique implementation. Theseideasshedfurtherlightontheargumentputforthby LevieandLichtenstein(2010) that a linear-stage development model of new venture emergence is inappropriate. The various combinations of early/later new venture in a formative/developed industry suggest that some may proceed rapidly in a linear fashion through phases of development, while others may find progress slow, difficult, stalled or occasionally regressive. Finally, the results of this study suggest avenues for future research on new ventures using the resource-based theory perspective. First, the findings offer enhanced opportunity for the productive application of the dynamic capabilities concept to new ventures. The dynamic capabilities argument is about moving from one configuration of resources to another. By identifying bundles or configurations of resources at different developmental phases, those interested in dynamic capabilities now have an initiation reference point. The integrative view outlined in this paper highlights two additional facets of resource development in new ventures. First, a combination of resources developed simultaneously in a non-linear pattern appears to be critical to the success of new ventures. Moreover, the view that resource combinations must evolve as the strategic challenges evolve brings an important contextual view to the examination of dynamic resource development efforts. So attempts to focus in a piecemeal fashion on individual aspects of resource development, without accounting for resource interactions at a systemic level or the nature of the strategic demands, is likely to leave researchers and practitioners with incomplete insights. Second, the measurements of success in efforts to
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