Innovation in start-ups: Ideas filling the void or ideas devoid of resources and capabilities?. (July 2015)

• Record Type: Journal Article
• Authors: Paradkar, Amit; Knight, John; Hansen, Paul
• Is Part Of: Technovation. Volume 41/42(2015)
• Page Start: 1
• Page End: 10
• Publication Date: 2015-07
• Subjects: Innovation -- Entrepreneurship -- Commercialization -- Start-ups -- Resources -- Capabilities -- Dynamic capabilities -- Core competencies; Technological innovations -- Periodicals; Industrial management -- Periodicals; Innovations -- Périodiques; Gestion d'entreprise -- Périodiques; Electronic journals; 658.57
• DOI: 10.1016/j.technovation.2015.03.004
• Languages: English
• ISSNs: 0166-4972

Abstract

Abstract: We investigate how access to different types of resources affects the success of entrepreneurial start-up firms at early stages of development in small isolated economies by studying 12 start-ups based in New Zealand. We find that successful commercialization of innovations depends on the availability of complementary assets, and that capability-based resources, especially dynamic capabilities, have a greater impact on competitive advantage of start-ups than other intangible and tangible assets. For the start-ups in our study, alliances with partners are particularly important, and so the ability to form alliances is a key capability. Successful start-ups leverage their available resources to attract alliance partners in order to access necessary complementary resources. The start-ups in our study clearly demonstrated the ability to attract partners locally but struggled to do so internationally, thereby limiting their growth potential. Highlights: We identify types of resources most critical for success of start-up firms. Start-ups based in a small isolated economy face particular challenges. Successful commercialization depends on availability of complementary assets. Capability-based resources matter more than other intangible or tangible assets. Partnering with firms providing complementary assets is critical for survival.