Beyond Environmental Scarcity: Human and Social Capital as Driving Forces of Bootstrapping Activities

17 Pages Posted: 19 Mar 2016

See all articles by Dietmar Grichnik

Dietmar Grichnik

University of St. Gallen

Jan Brinckmann

Loyola University of Chicago

Luv Singh

WHU - Otto Beisheim School of Management

Sophie Manigart

Vlerick Business School; Ghent University

Date Written: March 17, 2013

Abstract

Although entrepreneurship scholars highlight bootstrapping as a key resource acquisition approach to respond to the inherent resource constraints that nascent ventures face, little is known about what causes nascent ventures to engage in bootstrapping. Theory highlights the environment as an important determinant of bootstrapping activity. Analyzing bootstrapping behavior of 298 nascent ventures, we find that beyond perceived environmental factors, individual characteristics of the nascent entrepreneurs and factors relating to the embeddedness of the entrepreneurs in the environment determine their venture's bootstrapping behavior. In a more fine-grained analysis we gain insights into how these antecedents shape the use of particular bootstrapping strategies. Findings contribute to our understanding of factors driving resource management approaches in nascent ventures.

Keywords: Bootstrapping, Human capital, Social capital, Environmental munificence, Nascent ventures

Suggested Citation

Grichnik, Dietmar and Brinckmann, Jan and Singh, Luv and Manigart, Sophie, Beyond Environmental Scarcity: Human and Social Capital as Driving Forces of Bootstrapping Activities (March 17, 2013). Journal of Business Venturing, Vol. 29, 2014. Available at SSRN: https://ssrn.com/abstract=2749193

Dietmar Grichnik

University of St. Gallen ( email )

Dufourstrasse 50
St.Gallen, CH-9000
Switzerland

Jan Brinckmann

Loyola University of Chicago ( email )

25 East Pearson Street
Chicago, IL 60611
United States

Luv Singh

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallendar, 56179
Germany

Sophie Manigart (Contact Author)

Vlerick Business School ( email )

Reep 1
Ghent, BE-9000
Belgium

Ghent University ( email )

Sint-Pietersplein 7
Gent, 9000
Belgium

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