Making wine and making successful wineries.pdf

Firms confront a continuously shifting landscape of

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firms confront a continuously shifting landscape of problems ( Kazanjian, 1988 ) and must adapt their resource positions to succeed ( Barney, 1991 ). Although there is a significant body of research applying the resource perspective to new ventures, this work to date has not yet substantively addressed one of the most critical resource development questions that confront new ventures. This question is: “which resources to develop, at which stage of the new venture’s development?” Although many categories of resources have been identified, and much attention has recently been devoted to the dynamic capabilities process of augmenting and creating resources, it is not at all clear to entrepreneurs what path they should follow in developing resources for their new ventures. Which resources are absolutely critical at inception? Which new resources should be developed next, and which existing resources should be extended or augmented? To what extent do the contextual challenges of organizational and industry development affect resource investment decisions? This question of “which resources, at which stage” is vitally important for three reasons. First, in both research and practice, we know a great deal about starting up companies. And yet survival rates among startup companies remain at very low levels, especially long-term survival ( Castrogiovanni, 1996 ; Gimeno et al. , 1997 ; Reynolds and Miller, 1992 ), because of failures to address unfolding strategic challenges. Identifying which resources are important for the strategic challenges they confront offers the opportunity to enhance growth and survival. Second, it is commonly accepted that resource development – and the dynamic capabilities development which follows – is path dependent ( Lichtenstein et al. , 2006 ; Zahra et al. , 2006 ). The current resource base not only provides a foundation for future resources development, but also shapes and constrains the sorts of development that can occur. Thus, the development of initial resources is a critical question for new ventures. Third, liability of newness ( Stinchcombe, 1965 ) and low or non-existent levels of slack suggest that investments in the development of unneeded resources may compromise an organization’s future ( McKelvie and Davidsson, 2009 ). For these reasons, Barney et al. (2011 , p. 1307) argue for the “need to examine paths and sequences of their evolution”. This paper investigates these resource development research questions, incorporating two organizing perspectives. Drawing on a dynamic states model ( Levie and Lichtenstein, 2010 ), we examine phases of resource development as a new venture makes the transition from inception to a self-sustaining level. We build on extant theory about resources ( Barney, 1991 ; Dierickx and Cool, 1989 ; Penrose, 1959 ; Peteraf, 1993 ) and resource development ( Brush et al. , 2001 ; Lichtenstein and Brush, 2001 ; Lichtenstein et al. , 2006 ) and propose that entrepreneurs must develop their firm’s resource positions in a path-wise fashion ( Ahuja and Katila, 2004 ) in response to progressively unfolding strategic organizing challenges they confront ( Zahra et al. , 2006 ).
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  • Spring '14
  • Dr.SeanStanley
  • new ventures

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