Insecure Advantage? Markets for Technology and the Value of Resources for Entrepreneurial Ventures

38 Pages Posted: 28 Apr 2011

See all articles by Anand Nandkumar

Anand Nandkumar

Indian School of Business (ISB), Hyderabad

Ashish Arora

Duke University - Fuqua School of Business; National Bureau of Economics Research; Duke Innovation & Entrepreneurship Initiative

Date Written: December 2, 2010

Abstract

We study how the impact of capabilities for performance is contingent upon the environment. Using a novel dataset of Information Security startups, we study how markets for technology change the relative impact of technology and marketing capabilities on performance. Since internal technical effort enables firms to generate technology inputs instead of acquiring it from the market (substitute), a greater supply of technology diminishes the importance of technical ability as a source of competitive advantage. Moreover, since marketing capability complements technology inputs, a greater supply of technology enhances the impact of marketing capability on performance.

Keywords: RBV, markets for technology, entrepreneurship, contingent value of resources, performance

Suggested Citation

Nandkumar, Anand and Arora, Ashish, Insecure Advantage? Markets for Technology and the Value of Resources for Entrepreneurial Ventures (December 2, 2010). Indian School of Business WP, Available at SSRN: https://ssrn.com/abstract=1824287

Anand Nandkumar (Contact Author)

Indian School of Business (ISB), Hyderabad ( email )

Hyderabad, Gachibowli 500 019
India

Ashish Arora

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

National Bureau of Economics Research

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

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