Resource configurations for new family venture growth

Abstract

PurposeSustainable Family Business Theory states that human, social, and financial capital are important for new family venture growth, yet there may be multiple combinations that could be beneficial. The purpose of this paper is to examine whether all three types of resources are always needed for growth.Design/methodology/approachFuzzy-set Qualitative Comparative Analysis, a configurational method, is used to investigate which combinations of human, social, and financial capital consistently lead to new family venture growth.FindingsMultiple distinct combinations of resources – usually containing some form of human capital along with either social or financial capital – were sufficient for new family ventures to grow.Research limitations/implicationsThe findings contribute to a more accurate Sustainable Family Business Theory in terms of the resource bundles needed to achieve growth. Not all three primary resources are needed at founding for the venture to grow. Results suggest a need for renewed focus on human capital in family venture research, as well as further investigations of the resource configurations uncovered here and their effects on family firm outcomes.Practical implicationsGiven the costs associated with acquiring resources, the findings can inform family entrepreneurs and other stakeholders purposed with assisting new family ventures regarding optimal avenues of achieving growth.Originality/valueThis study advances theory by demonstrating which combinations of primary resources lead to new family venture growth. The findings shed light on how human, social, and financial capital may substitute for each other, as well as how the value of each depends on the presence or absence of the others.