Research on the affecting mechanism of entrepreneurial environment on new firm performance

Abstract

PurposeThis paper aims to build a theory model to examine the influencing mechanism of entrepreneurial environment on new firm performance based on network view and resource‐based view, and then carry out empirical research.Design/methodology/approachData were obtained from 112 new firms, through the use of questionnaires, in Changchun city, China.FindingsEvidence indicates that the entrepreneurial environment has an impact on new firm performance through entrepreneurial network and resource acquisition. The results show that eight out of ten hypotheses are supported.Practical implicationsIn a hostile, dynamic and complex environment, the new firm should enhance its entrepreneurial network to ensure resource acquisition and then promote performance.Originality/valueThe paper shows definitely the significance of entrepreneurial network as a bridge between external environment and resource acquisition and new firm performance. Entrepreneurial network and resource acquisition are identified as important intermediary variables, and resource combination ability as a moderating variable. This paper examines the influence of external environment on new firm performance. The research has some theoretical and managerial implications for new firms' survival and obtaining growth in highly uncertain and turbulent environments.