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International Entrepreneurship and Management Journal

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01-09-2014

Entrepreneurial performance of early-stage ventures: dynamic resource management for development and growth

Authors: Artie W. Ng, Douglas Macbeth, Geoff Southern

Published in: International Entrepreneurship and Management Journal | Issue 3/2014

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Abstract

Effective allocation of resources for the development and growth of early-stage ventures (ESVs) is a continuous challenge for their equity stakeholders. This paper explores the relevance of intellectual capital (IC) as a critical resource for entrepreneurial performance in ESVs driven by new knowledge development and technological innovation. An interdisciplinary literature review is conducted to examine prior studies on entrepreneurial performance and resource management for ESVs. A conceptual framework is developed using a taxonomy of IC that explains how the underlying network resources enhance the development and growth of ESVs. Utilizing a multiple case study approach, this paper suggests a dynamic process of resource allocation into heterogeneous IC that are optimally coordinated by the founders during an ESV’s development and growth through interaction with external networks. This approach in resource allocation complements the staged entrepreneurial finance and investment strategy for ESVs and their subsequent developments.

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The H.1, H.3 and H.6 indicators refer to the list of human capital indicators suggested by Ordonez de Pablos (2004). The H.2 and H.5 indicators refer to the indices of human capital suggested by Chen et al. (2004). The H.4 indicator confirms the use of stock options to improve the alignment of interest by Elitzur and Gavious (2003). In general, these indicators also take into account the importance of “bonding” with management in growth ventures, as suggested by Barney et al. (1996).

The indicators in this category refer to the indices of innovation capital suggested by Chen et al. (2004).

The indicators in this category refer to the indices of structural capital suggested by Chen et al. (2004) and the concept of technological infrastructure by Weiss and Birnbaum (1989).

The indicators in this category refer to indices of customer capital suggested by Chen et al. (2004).

Despite the stronger reliance of wireless communication application firms on software-system developments and weaker reliance on fixed assets and production facilities than semiconductor firms, their investments in tangible assets such as computer systems and facilities as part of structural capital are essential to the scalable delivery of products and services to end-customers. The two selected wireless communication application firms are found to allocate resources continuously into the R&D of new software products and solutions.

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Title: Entrepreneurial performance of early-stage ventures: dynamic resource management for development and growth
Authors: Artie W. Ng
Douglas Macbeth
Geoff Southern
Publication date: 01-09-2014
Publisher: Springer US
Published in: International Entrepreneurship and Management Journal / Issue 3/2014
Print ISSN: 1554-7191
Electronic ISSN: 1555-1938
DOI: https://doi.org/10.1007/s11365-014-0303-x

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