Abstract
Following on the resource-advantage theory, this study advances existing research by examining what configuration of a new venture’s boundary-spanning search can obtain successful venture performance and how a founding team’s external relationship and the internal firm competences shapes the relationship between the distant search and new venture performance. The paper is based on a questionnaire survey/analysis of a sample of 178 new ventures from China. This paper offers insight to entrepreneurs with regard to the importance of building external managerial ties and developing idiosyncratic internal competences on boundary-spanning search. In addition, our study also reveals that the effectiveness of supply-, demand- and spatial-side boundary-spanning search on venture performance depends upon investing resource at a rational level. Key words: Boundary-spanning search strategy, new venture, managerial tie, firm competence.
Highlights
Studies have shown that the ability to explore is considered to be a key to an organization’s long-term survival, in a more dynamic environment (Jansen et al, 2006)
The results suggest that the extra-industry managerial tie positively moderates the effect of supply-side search (β= 0.14, t = 1.93, p
Our results suggest that governmental and financial relationship may enhance the effectiveness of these new ventures boundaryspanning search
Summary
Studies have shown that the ability to explore is considered to be a key to an organization’s long-term survival, in a more dynamic environment (Jansen et al, 2006). Several literature seems to converge around the idea that exploration has been characterized as a non-local or distant search for discovering new approaches to technologies, business, processes or products and a pursuit of new knowledge (Birerly and Daly, 2007; Rosenkopf and Nerkar, 2001). A key feature of exploration in the information-processes perspective is a distant search, called boundary-spanning search. Boundary-spanning search in this study reflects that information from the external environment is sought to be brought into the boundary of the organization. It expands the scope of external information acquisition for firms, thereby accumulating and transforming the distant knowledge that ensures a better understanding of the external environment and can become embodied into new firm innovation. New ventures may likely pursue boundary-spanning search, which can bring
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
