Entrepreneurs and the Process of Obtaining Resources

Thomas Hellmann ()

Journal of Economics & Management Strategy, 2007, vol. 16, issue 1, pages 81-109

Abstract: "This paper examines the process of how entrepreneurs assemble resources. In the model, the entrepreneur's challenge is to convince two complementary resource providers to commit their resources to a new venture. Before committing their resources, one of them needs to perform a costly evaluation. The entrepreneur has a problem with getting sufficient attention, because each provider has an incentive to wait and free-ride on the other's evaluation. For some parameters the entrepreneur solicits both partners with equal intensity ("knocking on every door"); for others, the entrepreneur always solicits the same partner ("pestering"). For many but not all parameter ranges, the process of assembling resources takes too much time relative to what is socially efficient. The model thus explores what factors facilitate or hinder the creation of new firms." Copyright 2007, The Author(s) Journal Compilation (c) 2007 Blackwell Publishing.

Date: 2007
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2007&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:jemstr:v:16:y:2007:i:1:p:81-109

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Blackwell Publishing
Series data maintained by Christopher F. Baum ().