The effects of entrepreneurial bricolage and alternative resources on new venture capabilities: Evidence from China

Abstract

New ventures often face resource constraints when developing their capabilities to succeed in market competition. In this study, we draw on the resource orchestration perspective and propose that efficient resource management may be more important for new ventures than their existing resources when developing superior firm capabilities that are critical for new venture success. Using data from 207 new ventures in China, our study finds that entrepreneurial bricolage, as a resource orchestration process, can significantly enhance a new venture’s strategic flexibility and growth capability. Moreover, the effectiveness of this strategy depends on the availability of alternative resources, such as resources obtained through external network ties and from founding team members with diverse backgrounds. Our research findings thus provide practical information to help small and new firms get through difficult times without seeking additional resources.