Human capital, reverse engineering and new venture growth: The moderating role of competitive strategy. (June 2022)

• Record Type: Journal Article
• Authors: Adomako, Samuel; Amankwah-Amoah, Joseph; Frimpong, Kwabena
• Is Part Of: Technovation. Volume 114(2022)
• Publication Date: 2022-06
• Subjects: Africa -- Competitive strategy -- Human capital -- New manufacturing firms -- Dynamic capabilities -- Reverse engineering -- Ghana.; Technological innovations -- Periodicals; Industrial management -- Periodicals; Innovations -- Périodiques; Gestion d'entreprise -- Périodiques; Electronic journals; 658.57
• DOI: 10.1016/j.technovation.2022.102520
• Languages: English
• ISSNs: 0166-4972

Abstract

Abstract: In this study, we propose human capital as an important enabler of new venture growth (NVG) and investigate how and when it enhances NVG. We examined this by considering a dynamic capability – reverse engineering– as a mediator and competitive strategy as an important contingency variable. Using survey data collected from 229 new manufacturing ventures in an emerging economy (Ghana), the results indicate that reverse engineering mediates the effect of human capital on NVG. The contingency analyses also revealed that the positive impact of reverse engineering on NVG is stronger at high levels of low-cost strategy. However, the relationship between reverse engineering and NVG is weaker when the differentiation strategy is high. The implications of the findings are discussed. Highlights: The effects of human capital on reverse engineering on new manufacturing ventures investigated. The moderating effect of competitive strategy on the human capital-reverse engineering relationship is examined. Reverse engineering, human capital and venture growth are investigated.