Venture Investment and Dynamic Complementary Capabilities

Abstract

Teece (2007) argued that entrepreneurial ventures are inherently dynamic. Dynamic capabilities help a venture attain and sustain competitiveness in a rapidly changing competitive environment. Dynamic complementary capabilities are different from the entrepreneurial capabilities (Arthurs and Busenitz, 2006). Chapter 4 describes the entrepreneurial capital resources or entrepreneurial capabilities, namely the entrepreneur’s knowledge capital, human capital, family capital, social capital, and emotional capital. Entrepreneurial capabilities are the abilities of an entrepreneur to identify and reconfigure an entrepreneurial opportunity, and thus effectuate the entrepreneurial competence (in Stage 1 or during the venture formulation process). In comparison, in Stage 2, during the venture monetization process, dynamic complementary capabilities are the venture capabilities or the value levers that are employed to modify and reconfigure the entrepreneurial competence, strengthening the venture’s business model value drivers, and thus enhancing the value appropriation and entrepreneurial reward (see chapter 9). The survival and growth of a venture pivots on the timely organization and the speed of deployment of the selected dynamic complementary capabilities.