The entrepreneurship of resource-based theory

Author:

Alvarez Sharon A.1,Busenitz Lowell W.2

Affiliation:

1. The Fisher College of Business, 860 Fisher Hall, The Ohio State University, 2100 Neil Avenue, Columbus, OH 43210-1144, USA

2. University of Oklahoma, 307 W. Brooks St., Norman, OK 73019-4006, USA

Abstract

This paper examines the relationship between resource-based theory and entrepreneurship and develops insights that advance the boundaries of resource-based theory and begin to address important questions in entrepreneurship. We extend the boundaries of resource-based theory to include the cognitive ability of individual entrepreneurs. Entrepreneurs have individual-specific resources that facilitate the recognition of new opportunities and the assembling of resources for the venture. By focusing on resources, from opportunity recognition to the ability to organize these resources into a firm and then to the creation of heterogeneous outputs through the firm that are superior to the market, we help identify issues that begin to address the distinctive domain of entrepreneurship.

Publisher

SAGE Publications

Subject

Strategy and Management,Finance

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