Resource combinations influence on new firm growth, studying new entrants in a high tech industry

• Main Authors: Giones, Ferran, Gozun, Brian, Miralles, Francesc
• Format: text
• Published: Animo Repository 2016
• Subjects: Technological innovations; Human capital; Business enterprises; Business
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/3414; https://animorepository.dlsu.edu.ph/context/faculty_research/article/4416/type/native/viewcontent/ITMC39735.2016.9026146
• Institution: De La Salle University

Understanding the influence of resources on the new firm's growth remains a difficult challenge for scholars. Prior research has suggested that the impact of human capital or technological resources is limited and does not provide an explanation on why some new firms grow faster than others. In this research we propose to explore the complementary and substitution effects between these resources using Kauffman Firm Survey (KFS) Dataset. We also introduce market resources to further understand the influence dynamics of resources in early stage growth. We follow the evolution of a sample of firms in a high tech industry to test our hypotheses. The results show that besides the direct effects of human, technological and market resources, it is the complementary and substitution effects across them that provides additional valuable information to understand their impact on new firm's growth. © 2016 IEEE.