A widely held belief is that resource constraints and industry conditions pose
severe threats to the performance of entrepreneurial firms. While previous research links
resources controlled by these firms to different performance outcomes, extant research
on organizational performance often assumes away contextual differences in the
allocation of scarce resources by firms to develop and leverage different organizational
capabilities. Further, no research has explored the performance implications of resource
use, especially for new ventures.
The purpose of this study is to bring capabilities to the foreground in the
examination of organizational performance for new ventures following an initial public
offering (IPO). Building from resource-based theory and contingency theory, I examine
the indirect (through capability formation and use) effects that occur within the ‘black
box’ between resources and performance for a sample of entrepreneurial firms
undertaking an IPO. New theory is offered to explain the formation and performance
outcomes of two configurations of organizational capabilities: market-managing capabilities and market-creating capabilities. Human capital is considered, bringing
agency into theory explaining capability formation and use. Further, I consider how
underlying routines allow resources to be managed for greater value across different
industries—conditions that make resources valuable in some contexts and not in others.
I find that resource endowments at IPO affect the formation and use of
organizational capabilities and that this relationship varies across different industry
contexts. Further, I find support for the indirect effect of resources on performance
outcomes through capability formation and use. More specifically, I find that
adjustments to the configuration of organizational capabilities affect performance
prospects over time. Results confirm that capability configurations compete for scarce
resources, necessitating tradeoffs in allocation decisions between them. I also find that
industry conditions moderate this relationship.
By employing an integrative, multidisciplinary approach, this dissertation
extends research on the performance effects of resource endowments and capability
formation and use for entrepreneurial firms. Further, it contributes to growing research
on IPO firms in strategic management and entrepreneurship, especially theoretical and
empirical research examining the different firm and industry conditions that affect
organizational performance during the period following a firm’s transition into the
public arena.
| Identifer | oai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/ETD-TAMU-1943 |
| Date | 02 June 2009 |
| Creators | Holcomb, Timothy R. |
| Contributors | Hitt, Michael A., Ireland, R. Duane |
| Source Sets | Texas A and M University |
| Language | en_US |
| Detected Language | English |
| Type | Book, Thesis, Electronic Dissertation, text |
| Format | electronic, application/pdf, born digital |
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