Lichthen

Frontiers of Entrepreneurship Research
1997 Edition

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SALIENT RESOURCES IN NEW VENTURES: A LONGITUDINAL STUDY OF THE COMPOSITION AND CHANGES OF KEY ORGANIZATIONAL RESOURCES IN THREE ENTREPRENEURIAL FIRMS
Benyamin Lichtenstein, Boston College
Candida Brush, Boston University

INTRODUCTION
SALIENT THEORY: RESOURCES AND CHANGES IN NEW VENTURES
    Resource–Based View in Entrepreneurship
    Emergence of New Ventures—Life Cycle vs. Punctuated Change
    EXHIBIT 1: Punctuated Shifts in Resource Flows
RESEARCH METHODS
    Analytic Procedure
RESULTS
    “WebDesign"—Revolutionary Shifts to new Resources
    EXHIBIT 2: Descriptions of the Three Ventures, and Data collected
    "ApplySci"—Punctuated Changes and Emerging Resources
    EXHIBIT 3: Resource Changes at WebDesign across Five Data Collection Phases (8/15/96 —> 1/17/97)
    EXHIBIT 4: Resource Changes at ApplySci across Four Data Collection Phases (9/25/96 —> 2/20/97)
    "AgencyInc"—An Evolution of Resources
DISCUSSION
    EXHIBIT 5: Resource Changes and Perceived Importance at AgencyInc. (9/9/96 -> 1/20/97)
LIMITATIONS AND IMPLICATIONS
SELECTED REFERENCES

ABSTRACT

While the Resource–Based Theory of the firm provides a useful model of capabilities that result in competitive advantage in new ventures (Greene, Brush & Hart, 1997), as of yet there is very little empirical exploration of this idea, nor of the critical question, how do these organizational capabilities change over time in growing firms. This paper addresses the composition and change of organizational resources. We explored these through inductive, qualitative, longitudinal research in three rapidly growing new ventures. Preliminary findings suggest that organizational resources are similar to theoretical categories found in the literature, and that these 'resource bundles' did change across shifts in these company's development.

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