Start-up absorptive capacity: Does the owner's human and social capital matter?. (November 2014)

• Record Type: Journal Article
• Authors: Debrulle, Jonas; Maes, Johan; Sels, Luc
• Is Part Of: International small business journal. Volume 32:Number 7(2014)
• Page Start: 777
• Page End: 801
• Publication Date: 2014-11
• Subjects: business owner -- environmental turbulence -- human capital -- organisational absorptive capacity -- social capital -- start-up; Small business -- Periodicals; 338.64205
• DOI: 10.1177/0266242612475103
• Languages: English
• ISSNs: 0266-2426

Abstract

This study investigates how a business owner's human and social capital affects start-up absorptive capacity under different environmental conditions. From an analysis of a sample of 199 Flemish start-ups, the study observes that the owners' start-up experience and bridging social capital are positively and significantly related to the new venture's ability to acquire, assimilate and exploit external information. In addition, the findings reveal a positive but decreasing effect of owner-specific human capital as a function of environmental turbulence. Furthermore, the study finds that management experience significantly stimulates start-up absorptive capacity within highly dynamic environments, whereas it hinders it within stable environments. Finally, implications of the study and opportunities for future research are provided.