How counter-fate relational practices mitigate resource acquisition challenges during project nascence

Abstract

Research shows that embedded relations can facilitate the resource acquisition process in entrepreneurship. Yet, as relations are dynamic and subject to change, it remains unclear how entrepreneurs can acquire necessary resources when pre-existing ties may not yet or no longer be relevant, sufficient or accessible. Under these circumstances, acquiring necessary resources is a challenge and one that novice entrepreneurs in project-based enterprises face repeatedly as they seek to sustain their businesses. Evidence from 123 projects developed by six newly formed independent television production companies in the UK shows that new entrepreneurs can manoeuvre around constraints by engaging in one of four counter-fate relational practices: posturing (i.e. exaggerating interest from key ties), status sequencing (i.e. developing key relations in sequence based on status), geographic sequencing (i.e. attaining key ties in sequence based on location), and opportunistic manoeuvring (i.e. manipulating the opportunism of potential resource-holders). We contribute to entrepreneurship research by showing how resources can be acquired despite a lack of key embedded ties, and highlight enabling conditions; and to project studies by illustrating how projects progress past nascence to launch and acquire new clients or repeat commissions.