 Turning water into wine? Exploring the role of dynamic capabilities in early-stage capitalization processesDavid M. Townsend and Lowell W. Busenitz Journal of Business Venturing, 2015, vol. 30, issue 2, 292-306 Abstract: Technology-based ventures face considerable challenges when attempting to raise early-stage capital during the early-stages of development. To create an operational business they need access to financial capital, but external investors prefer to see an operational business before investing capital. This study extends arguments grounded in dynamic managerial capabilities theory to examine the extent to which various trade-offs among the quality of a venture's management team, radicalness of the firm's technological resources, and demand uncertainty in focal markets impact the ability of ventures to resolve these capitalization challenges. We find that higher levels of demand uncertainty and more radical innovations do not appear to enhance the impact of strong management teams on the raising of early-stage capital. However, lower levels of uncertainty do appear to strengthen the effects of strong management teams. Implications of these findings for dynamic capabilities theory and early-stage capitalization processes are discussed. Keywords: Resource-based theory; Early-stage capital; Technology-based ventures; Dynamic managerial capabilities; Entrepreneurial teams (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:30:y:2015:i:2:p:292-306 DOI: 10.1016/j.jbusvent.2014.07.008 Access Statistics for this article Journal of Business Venturing is currently edited by S. Venkataraman More articles in Journal of Business Venturing from Elsevier |
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