Despite the numerous observations that dynamic capabilities lie at the source of competitive advantage, we still have limited knowledge as to how access to firm-based resources and changes to these affect the development of dynamic capabilities. In this paper, we examine founder human capital, access to employee human capital, access to technological expertise, access to other specific expertise, and access to two types of tangible resources in a sample of new firms in Sweden. We empirically measure four dynamic capabilities and find that the nature and effect of resources employed in the development of these capabilities vary greatly. For the most part, there are positive effects stemming from access to particular resources. However, for some resources, such as access to employee human capital and access to financial capital, unexpected negative effects also appear. This study therefore provides statistical evidence as to the varying role of resources in capability development. Importantly, we also find that changes in resource bases have more influential roles in the development of dynamic capabilities than the resource stock variables that were measured at an earlier stage of firm development. This provides empirical support for the notion of treating the firm as a dynamic flow of resources as opposed to a static stock. This finding also highlights the importance of longitudinal designs in studies of dynamic capability development. Further recommendations for future empirical studies of dynamic capabilities are presented.

From resource base to dynamic capabilities : an investigation of new firms

This manuscript offers a theory regarding two distinct avenues to new venture internationalization: a direct path described in much of the extant literature and an intermediated one in which new ventures and multinational firms create symbiotic relationships in order to expand internationally. The term “born local”, as opposed to “born global”, describes how new ventures are created from knowledge spillovers and other resources in a geographically bounded environment. The theory suggests that the greater the number of value chain activities and the greater the number of countries involved, the more likely that the new venture will pursue the intermediated mode of internationalization. We suggest that new ventures frequently specialize and use existing MNEs as conduits for international expansion; however the greater the perceived ex-post costs of protecting intellectual property, transaction costs, and extraction costs related to hold-up, agency, and monopoly rents, the more likely the new venture will pursue a direct mode of internationalization.

Born local: toward a theory of new venture’s choice of internationalization

The purpose of this paper is to evaluate the effect of CRM performance and technological innovation on performance of media entrepreneurs considering firm size.,This is an analytical study used to empirically test the hypotheses proposed for SEM techniques using PLS and R packages. It used two steps in this way: the assessment of the outer model and the assessment of the inner model. Moreover, a bootstrapping method was employed to test indirect effects. Data were collected by distributing 127 questionnaires between the managers and deputies of active firms across Rasht, Iran.,The effect of CRM performance on SMEs performance development is partially mediated by media entrepreneurship. Moreover, the effect of technological innovation on SMEs performance development is mediated by media entrepreneurship. Furthermore, permutation test results indicated that there is no significant difference between small- and medium-sized firms.,This study used cross-sectional sampling method that can seriously limit result generalization. Therefore, conducting longitudinal studies is strongly recommended.,The results of IPMA matrix indicated the serious importance of technological innovation, as a variable with the highest importance for SMEs performance development. Nevertheless, this variable has received the lowest importance in the studied population. Therefore, SMEs’ managers should pay sufficient attention to the concepts of “product innovations” and “process innovations.”,This study is of high importance in that it has adopted new and effective indices for statistical analysis. IPMA matrix, permutation test, CTA and FIMIX are examples. In addition, plspm and Matrixpls packages in R were used for the first time in this study.

CRM performance and development of media entrepreneurship in digital, social media and mobile commerce

Speeding up new product development through entrepreneurial orientation in SMEs: The moderating role of ambidexterity

Based on an ambidexterity approach and using data from 384 Spanish bank branch managers, the results of this study confirm that market orientation facilitates the development of dynamic exploratory...

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Ambidexterity as a Key Factor in Banks’ Performance: A Marketing Approach

Drawing from resource-based theory, the authors aim to study how and under what conditions small- and medium-sized enterprises (SMEs) capitalise on their proactive entrepreneurial behaviour (PEB) to achieve new product development (NPD) performance.,The authors’ data were drawn from a cross-sectional questionnaire survey of 401 UK-based SMEs in the manufacturing sector.,The authors identify an upward curvilinear relationship between PEB and NPD performance. Taking a step further, the authors propose and confirm that this curvilinear association arises from, in part, SMEs’ innovation capability, which in turn translates into NPD performance. The authors also find that this upward curvilinear relationship between PEB and innovation capability flips to a downward curvilinear relationship when firms pursue a customer and competitor orientation.,This paper looks beyond the linear relationship that exists among entrepreneurial behaviour, market orientation and innovation outcomes.

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Proactive entrepreneurial behaviour, market orientation, and innovation outcomes: a study of small- and medium-sized manufacturing firms in the UK

This paper aims to examine the effect of external supply chain (SC) flexibility on the product innovation performance of small- and medium-sized enterprises (SMEs) and the contingent role of informal control mechanisms in moderating such an effect.,This study conducts a cross-sectional questionnaire survey of 236 UK-based SME manufacturers.,Inbound supplier flexibility (ISF) has a stronger positive effect on SMEs’ product innovation performance than outbound logistics flexibility (OLF), and that the strength and direction of both effects depend on informal control mechanisms. Lead supplier influence negatively moderates the relationship between ISF and product innovation performance but positively moderates the relationship between OLF and product innovation performance. Normative integration positively moderates the relationship between ISF and product innovation performance.,This study enriches SC flexibility studies by focusing on understanding the differential effects of ISF and OLF on product innovation performance, as well as the role that contingency factors play in these relationships in the SME context.,To promote product innovation performance, SME managers should focus on building good relationships with their suppliers rather than their logistics service providers. SME managers should be particularly aware of the different types of informal control mechanisms that govern their SC relationships and adjust their managerial approaches accordingly.,This study distinguishes between ISF and OLF and examines their impacts on SMEs’ product innovation performance. This study investigates the differential effects of lead supplier influence and normative integration on the relationship between external SC flexibility and SMEs’ product innovation performance.

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External supply chain flexibility and product innovation performance: A study of small- and medium-sized UK-based manufacturers

Entry to export markets can stimulate business growth, yet remarkably few small- and medium-sized enterprises (SMEs) pursue export strategies. Using data gathered from the UK Small Business Surveys and a theoretical framework that combines principles from the resource-based view of the firm with notions of “investment readiness” and “managerial capacity,” we examine the empirical relationships between new product development (NPD) and new market entry (NME) capabilities on UK SMEs export decisions. Among other things, we find that there are contexts in which SMEs should develop these capabilities concurrently and others in which they should develop them independently to minimize added managerial complexity. Our results also indicate that in the absence of strong managerial capacity, SMEs should prioritize NME over NPD capabilities. Our findings produce several interesting theoretical and practical implications for SME exports.

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Wai Wai Joyce Ko

Papers

Proactive entrepreneurial behaviour, market orientation, and innovation outcomes: a study of small- and medium-sized manufacturing firms in the UK

External supply chain flexibility and product innovation performance: A study of small- and medium-sized UK-based manufacturers

Organizational capabilities and SME exports: the moderating role of external funding intentions and managerial capacity