Horse and Cart: The Role of Order in New Ventures

10 Pages Posted: 18 Feb 2017

See all articles by Nachiket Bhawe

Nachiket Bhawe

North Carolina State University - Poole College of Management

Hans Rawhouser

Lee Business School - University of Nevada Las Vegas

Jeffrey M. Pollack

NC State University

Date Written: July 25, 2016

Abstract

Entrepreneurs need to accumulate different types of resources to take the initial steps to grow their ventures. While much is known about the configurations of resources that improve venture success, less is known on how ventures should initially accumulate resources to begin to exploit valuable opportunities. Using agent-based simulations, we classify resources by the functions (search and execution) that they provide. We find that acquiring search resources before execution resources leads to more valuable opportunities, but only under conditions of higher uncertainty. We contribute to the entrepreneurial resource acquisition literature by showing how resource order may affect an entrepreneur’s ability in opportunity discovery, evaluation, and exploitation. We draw inferences on contingencies that can increase the salience of resource order on venture success.

Keywords: Resource Acquisition, Resource Based View, Entrepreneurial opportunities

Suggested Citation

Bhawe, Nachiket and Rawhouser, Hans and Pollack, Jeffrey M., Horse and Cart: The Role of Order in New Ventures (July 25, 2016). Available at SSRN: https://ssrn.com/abstract=2919676 or http://dx.doi.org/10.2139/ssrn.2919676

Nachiket Bhawe (Contact Author)

North Carolina State University - Poole College of Management ( email )

Hillsborough Street
Raleigh, NC 27695-8614
United States

Hans Rawhouser

Lee Business School - University of Nevada Las Vegas ( email )

4505 S. Maryland Parkway
Las Vegas, NV 89154
United States
702-895-1768 (Phone)
702-895-4370 (Fax)

HOME PAGE: http://www.unlv.edu/people/hans-rawhouser

Jeffrey M. Pollack

NC State University ( email )

Poole College of Management
NC State University
Raleigh, NC 27695
United States

HOME PAGE: http://www.jeffreympollack.com

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