New Ventures Competitiveness and Success; Do Intellectual Capital, IT Capabilities, Entrepreneurial and Market Orientation Really Matter?

Abstract

The failure ratio of new ventures across the globe pushes researchers towards finding solutions, but the response is not effective. This research project surveyed 297 new manufacturing enterprises from China to find factors that significantly contribute to the success of new ventures. The results indicated that intellectual capital significantly sustains performance and sustainable competitive advantage in new ventures. The relationship between intellectual capital and new venture performance is partially mediated by a sustainable competitive advantage. Information technology capabilities do not positively impact new venture performance and competitiveness. Entrepreneurial orientation has a significant influence on differentiation strategy and new venture performance. Sustainable competitive advantage does not mediate the path between entrepreneurial orientation and new venture performance, but it fully mediates the association between market orientation and new venture performance. This study recommends that new enterprises focus on intellectual capital, entrepreneurial orientation, and market orientation to acquire a sustainable position in the competitive market. New ventures should also evaluate their technological capabilities to understand why they do not play a vital role. Further implications have been stated.