How Do “Resource Bundles” Develop and Change in New Ventures? A Dynamic Model and Longitudinal Exploration

Abstract

According to recent studies applying Resource-Based Theory [RBT] to entrepreneurial firms (e.g. Chandler & Hanks, 1994; Brush & Greene, 1996), in the early stages of new venture development it is the identification and acquisition of resources—rather than deployment or allocation activities—that is crucial for the firm's long-term success (Stevenson & Gumpert, 1985). This study explores that relationship longitudinally, tracking salient resources in three rapidly growing new ventures, and analyzing how these resources change over time. Our findings identify the most common types of salient resources, the primary types of changes in resource and resource bundles, and a pattern linking the type of change with short-term performance results in each firm.