Entrepreneurial organizing activities and nascent venture performance

Anna Long (), Matthew S. Wood () and Daniel L. Bennett ()
Additional contact information
Anna Long: California State University
Matthew S. Wood: Hankamer School of Business
Daniel L. Bennett: College of Business, University of Louisville

Small Business Economics, 2023, vol. 60, issue 2, No 2, 433-461

Abstract: Abstract This research provides an improved understanding of how ventures successfully organize via resource allocations. Conceptually, we apply elements of action theory to account for resource trade-offs that occur as entrepreneurs make decisions about adding staff members to boundary spanning, technical core, and management functions. We then model how these allocation decisions differentially impact nascent venture performance. Empirically, we test our model with a sample of 2484 entrepreneurs captured in the Kauffman Firm Survey, a longitudinal dataset that tracks a random sample of US startups over an 8-year period. Results from dynamic panel estimation reveal evidence of both performance penalties and performance boosts as the result of entrepreneurs adding staff to specific areas, revealing optimality in specific configurations of entrepreneurial organizing elements.

Keywords: Nascent firm performance; Entrepreneurial organizing; Entrepreneurial hiring; Entrepreneurial action; Post venture creation; System GMM; L26; D22; M51; M13; C33 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11187-021-00595-1

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