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Pape o he ESU-con e ence a Uni e si y o Se ille, Spain, 12 - 17 Sep embe
2011
Co po a e en ep eneu ship and en c ea ion: an in eg a ion o
pe spec i es
Jo unn G ande
Con ac in o ma ion:
Jo unn G ande
No d-T øndelag Uni e si y College
Se icebox 2501
7729 S einkje
No way
E-mail: jo unn.g ande@hin .no
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ABSTRACT
Fi ms engage in co po a e en ep eneu ship o inc ease compe i i eness and sus ain
pe o mance h ough eju ena ion, enewal, and ede ini ion o hei o ganiza ions, ma ke s,
o indus ies. This is challenging o mos i ms, since i o en in ol es new ela ions o
cus ome s, supplie s and con ac wi h less amilia indus ies. The ewa d o success ul CE
engagemen should be a mo e p o i able i m. Howe e , he po en ial o new alue c ea ion
and compe i i e ad an ages may o igina e om di e en sou ces wi hin he i m and is qui e
complex. Thus, e en i he ela ionship be ween CE and pe o mance has been well
esea ched and documen ed, he e seem o be less unde s anding o he easons why CE may
p oduce supe io pe o mance. CE may le e age se e al bases o compe i i e ad an age. This
concep ual s udy a gues ha hese bases may be explo ed h ough he en ep eneu ial
o ien a ion (EO), esou ce based (RBV) and dynamic capabili y (DC) pe spec i es. The s udy
links he RBV, EO and DC pe spec i es espec i ely o Richa dian, En ep eneu ial and
Aus ian en s. Each o hese pe spec i es may hus p o ide hei unique insigh in o how
en ep eneu ship may c ea e new en s eams and imp o e pe o mance in i ms. In o al he
s udy con ibu es o u he unde s anding o how and why CE may lead o supe io
pe o mance in i ms.
1 INTRODUCTION
Fi ms engage in co po a e en ep eneu ship (CE) o inc ease compe i i eness and sus ain
pe o mance h ough eju ena ion, enewal, and ede ini ion o hei o ganiza ions, ma ke s,
o indus ies (Co in and Miles, 1999). This is challenging o mos i ms, since i o en
in ol es new ela ions o cus ome s, supplie s and con ac wi h less amilia indus ies. The
ewa d o success ul CE engagemen should be a mo e p o i able i m. Howe e , he
po en ial o new alue c ea ion and compe i i e ad an ages may o igina e om di e en
sou ces wi hin he i m and is qui e complex. E en i he ela ionship be ween CE and
pe o mance has been well esea ched and documen ed, he e is acco ding o Co in and Miles
(1999) less unde s anding o he easons why CE may p oduce supe io pe o mance. To
ex end knowledge on his issue his concep ual s udy pe cei e CE o be an o e a ching
pe spec i e and ool o analysing how new p o i ( en ) may be c ea ed and cap u ed by i ms
engaging in en ep eneu ial ac i i ies. Unde he CE umb ella he en ep eneu ial o ien a ion
(EO), esou ce based iew (RBV) and dynamic capabili y (DC) pe spec i es a e in eg a ed
since each o hem may ep esen a unique sou ce o sus aining compe i i e ad an age and
supe io pe o mance in i ms.
The pape p oceeds as ollows. Fi s he con en o CE and i s link o pe o mance is
explained. Then he concep o en and a ious ypes/sou ces o en a e explained and linked
o heo ies o CE (EO, RBV and DC). This is ollowed by a b ie iew o he con en EO,
RBV and DC pe spec i es. The pape ends by discussing and concluding on how hese
pe spec i es each yield unique insigh bu oge he also complemen ing insigh , on how and
why CE may lead o supe io pe o mance in i ms.
2 CORPORATE ENTREPRENEURSHIP (CE)
Based on he expec ed posi i e in luence on he enewal and pe o mance in exis ing i ms,
en ep eneu ial e o s in an o ganiza ional se ing ha e ecei ed inc eased a en ion among
schola s in he las decades (Mille , 1983; Co in and Sle in, 1989; Lumpkin and Dess, 1996;
Wiklund, 1999; Wiklund and Shephe d, 2003; 2005). I should be no ed ha a ange o e ms
and de ini ions a e used o desc ibe en ep eneu ial e o s wi hin an o ganiza ional con ex .
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Te ms o en used a e in ap eneu ship (An oncic and His ich, 2003), s a egic enewal
(Sha ma and Ch isman, 1999), co po a e en ep eneu ship (Zah a, 1995) and en ep eneu ial
o ien a ion (Lumpkin and Dess, 1996). This s udy has selec ed he e m co po a e
en ep eneu ship (CE) as an o e a ching pe spec i e and label o en ep eneu ial e o s inside
exis ing i ms. The de ini ion o Sha ma and Ch isman’s (1999, p. 18) is u he adap ed,
which s a es ha CE is “… he p ocess whe eby an indi idual o a g oup o indi iduals, in
associa ion wi h an exis ing o ganiza ion, c ea e a new o ganiza ion o ins iga e enewal o
inno a ion wi hin ha o ganiza ion”. CE is hus conside ed a p ocess whe e an indi idual o
g oup o indi iduals, in he con ex o an exis ing i m, c ea e inno a i e esou ce
combina ions (El ing, 2005). CE hus ecognises ha he en ep eneu ial ini ia i e has
eme ged om o wi hin an al eady exis ing o ganisa ion a he han appea ing only as an
independen indi idual ac . In addi ion o equi ing indi iduals wi h pa icula en ep eneu ial
beha iou wi hin he i m, he i m mus also possess an o ganisa ional en i onmen ha
ole a es and suppo s hese ac i i ies (El ing, 2005).
By b owsing h ough he li e a u e we ind desc ip ions o he con en like;
o ganiza ional c ea ion (Sha ma and Ch isman, 1999), p ocesses and ac i i ies ha leads o
new en y (Lumpkin and Dess, 1996), inno a ion and en u ing (Zah a, 1993), depa ing om
he cus oma y (An oncic and His ich, 2003), c ea ion o new weal h h ough new combina ion
o esou ces (Gu h and Ginsbe g, 1990), p oac i e inno a ions and isk aking (Mille , 1983).
These all desc ibe how en ep eneu ship may be unde aken inside an exis ing i m.
2.1 CE and pe o mance
Fi ms engage in co po a e en ep eneu ship o inc ease compe i i eness and sus ain
pe o mance h ough eju ena ion, enewal, and ede ini ion o hei o ganiza ions, ma ke s,
o indus ies (Co in and Miles, 1999). This is challenging o mos i ms, since i o en
in ol es new ela ions o cus ome s, supplie s and con ac wi h businesses in o he indus ies.
Howe e , he ewa d o success ul CE engagemen should be a mo e p o i able i m. The
ela ionship be ween CE and pe o mance has been well esea ched and documen ed, bu
acco ding o Co in and Miles (1999) he e is less unde s anding o he easons why CE may
p oduce supe io pe o mance. When expec ed e u ns a e no ob ained his migh indica e a
lack o unde s anding o wha cons i u es he po en ial o igins o c ea ing new compe i i e
ad an age in his sec o .
Co in and Miles (1999) a gue ha he e a e seeds o compe i i e ad an age in each o
hei ou ypologies. They also sugges ha hese ad an ages a e ela ed o he o ganiza ional
ac ions behind he CE phenomenon which again a e o en linked o ecognized bases o
compe i i e ad an age. They u he claim ha all ypologies o CE will ep esen
app op ia e, de ensible, and alue enhancing beha io o all i ms in any gi en compe i i e
con ex . The la e a gumen also sugges s ha mo e conse a i e i ms should bene i om
CE beha io and s a egies, e en i o he schola s ha e had less con idence in his (Ha ,
1992; Sma and Conan , 1994). Co in and Miles (1999) u he explain ha an o ganiza ional
eju ena ion in gene al may imp o e he i m’s implemen a ion o a new di e si ica ion
s a egy ha al eady has led o some imp o emen in pe o mance and hus u he op imize
bene i s om his s a egy.
Hamel and P ahalad (1989) also a gue ha CE will le e age mul iple bases o i s
ad an age, since high pe o mance o en a e he esul s o i ms ha a e able o “laye ”
se e al bases o i m compe i i e ad an age. Finally, Al a ez and Buseni z (2001) explain
ha h ough be e en ep eneu ial e o s and skills, i ms may u ilize hei esou ces mo e
e icien ly by disco e ing al e na i e uses o possessed esou ces and inc ease hei awa eness
owa ds new oppo uni ies in he en i onmen . In o al his sugges s ha CE should ha e a
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g ea po en ial o gi ing impo an insigh on which a e c i ical esou ces and capabili ies o
making a m en ep eneu ship success ul.
This s udy builds on and ex ends abo e heo y by discussing he concep o en as he
ou come o co po a e en ep eneu ship. Explo ing he concep o en may aid he
unde s anding o di e en po en ial sou ces o new compe i i e ad an ages and hus indica e
how new income s eams and supe io pe o mance may be c ea ed in i ms. This should
con ibu e o a be e unde s anding on how and why CE may lead o supe io pe o mance.
3 OUTCOMES OF CE – GENERATION OF RENTS
In classical economics he abili y o gene a e en has ea ly been conside ed one o he mos
impo an a ibu e o esou ces and he e m en s has been used as a common denomina o
o p o i s o esou ce owne s. As explained ea lie , engagemen in CE is expec ed o inc ease
he i ms’ po en ial o gene a e new en and supe io p o i s in i ms. In gene al en may be
e e ed o as “excess e u ns o esou ces ha a e limi ed in supply” (Schoemake , 1990, p.
1178) o as “ e u n in excess o a esou ce owne ’s oppo uni y cos abo e-no mal a es o
e u n” (Mahoney and Pandian, 1992, p. 364). Thus, i is he p opo ion o ea nings in excess
o he minimum cos needed o en e a speci ic indus y. Ren s may be gene a ed om
possessing sca ce and unique esou ces in a s a ic wo ld, bu migh also a ise om inno a i e
e o s dis up ing his s a ic pic u e acco ding o Schumpe e ’s heo y on c ea i e des uc ions
(Al a ez and Ba ney, 2004; Schumpe e , 1939). Thus he de ini ion and desc ip ion a ious
ype o en s may hus aid us in he p ocess o unde s anding why some i ms ea n p o i and
some i ms no (o a lo less).
P o i s ha o igina e om unique esou ces may be ela ed o economic en s. The
nine een h cen u y B i ish economis Da id Rica do ound ha when esou ces a e sca ce,
di e in quali y and a e mo e o less accessible hey ha e a po en ial o gene a e en s o hei
esou ce owne s (Galunic and Rondan, 1998; Knudsen, 2003). Rica do de eloped his heo y
on en based on examples om ag icul u e whe e he obse ed di e ences in p o i s o
landowne s ela ed o di e en quali y o land. This ype o en is commonly labelled
Rica dian en . Some esou ces a e limi ed in supply and may also a y in quali y such hey
a e mo e expensi e o ex ac o ha es compa ed o o he s. Rica dian en may hus include
alue a ached o owne ship o aluable land, loca ional ad an ages, pa en s and copy igh s
(Mahoney and Pandian, 1992). Depending on he s eng h o he isola ing mechanisms1
(ba ie s o imi a ion), he s abili y in supply o demand, esou ce owne s ( i ms) may be able
o sus ain his en .
Ano he sou ce o new alue c ea ion may ise om en ep eneu ial e o s in i ms.
P e ious ad an ages based on unique esou ces may be des oyed in long un, and o sus ain
p o i and compe i i eness i ms need o ind new ways o gene a ing en . Rica dian en
ypically e lec s a s a ic pic u e and ma ke s in equilib ium. Howe e , when his s a ic pic u e
is dis up ed, o ins ance by a Schumpe e ian inno a ion, Rica dian en s may also change
(Da och e al., 2005). A new disco e y o a esou ce (i.e. a me al subs i u e), inno a ions o
change in consume needs may lea e p e iously aluable esou ces obsole e and useless such
ha p e ious Rica dian en s e apo a e. To su i e and sus ain compe i i eness he i m hen
need o ind new sou ces o gene a e p o i .
In pe iods o u bulen and changing en i onmen s i ms hus need o c ea e new en
h ough explo a ion o new oppo uni ies, isk aking, inno a ions and p o-ac i e e o s in
1 Fo a comp ehensi e o e iew o isola ing mechanisms se able 1 in Mahoney and Pandian and also Al a ez and
Ba ney 2004.
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o de o su i e. This en is called en ep eneu ial o Schumpe e ian en a e he wo k o
Schumpe e on dis up i e inno a ions (Galunic and Rondan, 1998; Mahoney and Pandian,
1992). Al a ez (2007) explains ha en ep eneu ial en is e u ns p ima ily o isk and
unce ain y, and de ines i o be “ he alue c ea ed when economic ac o s combine esou ces
in new and di e en ways, and when hese esou ce combina ions a e no known ex an e”
(Al a ez, 2007, p. 431). The posi i e income e ec s ela ed o en ep eneu ial ac i i ies may
he e o e be ela ed o he gene a ion o en acc uing om new inno a ions and ma ke
dis up ions. In his way new esou ces o new uses o esou ces may be disco e ed.
When looking a he sus ainabili y o he newly c ea ed en ep eneu ial en , pa s o i
a e explained as inhe en ly sel -des uc i e due o di usion o knowledge. O he pa s o he
en ep eneu ial en may howe e con ain a new Rica dian en and hus a mo e las ing en ,
eme ging om he disco e y o new aluable esou ce combina ions unique o he i m
(Da och e al., 2005; Al a ez and Ba ney, 2004). En ep eneu ial en s may hus be di ided
in wo main pa s; paymen o a bi age and o inno a ions (Ross and Wes g en, 2005;
Al a ez, 2007)2. A bi age occu s in a si ua ion whe e ”an economic ac o al eady con ols
all esou ces necessa y o gene a e he en s associa ed wi h a ma ke oppo uni y” (Al a ez
and Ba ney, 2004, p. 624), while an inno a ion e lec s shi s in ei he demand o supply
cu es. Ren s om a bi age a e ypically mo e ulne able o compe i ion and hus likely o
dissipa e as an inno a ion di uses in he ma ke .
Acco ding o Al a ez (2007), i is no e iden ha i ms a e able o app op ia e all en
ha may be gene a ed om disco e ies and inno a ions. The eason is ha he alue o
en ep eneu ial en s may no be known when hey a e c ea ed, and depending on how easy
he new in en ions a e o imi a e, compe i o s migh also cap u e pa o his en . This means
ha en ep eneu ial ale ness may c ea e new en s eams o he i m, bu i is no always
ob ious how i ms should op imize he ad an age o hei new inno a ion. A c i ical issue is
he i ms’ abili y o app op ia e he en ha is gene a ed h ough hei en ep eneu ial and
inno a i e e o s (Al a ez, 2007). This ulne able pa o en ep eneu ial en may be called
Aus ian o Monopoly en , which makes a connec ion o supe io managemen and he abili y
o p o ec he i m om compe i ion (Al a ez and Ba ney, 2004). Fo ins ance, he knowledge
o and use o e ec i e isola ing mechanisms as well as he building o new s a egic alliances
migh help he i m in p o ec ing he en om dilu ion o agg essi e compe i o s (Teece e al.,
1997). Op imal app op ia ion o en may equi e e ec i e in eg a ion o new esou ces and
knowledge, and migh demand signi ican changes in he ope a ion o he i m. The i ms’
abili y o e ec i ely ini ia e and e ec ua e changes is hus likely o be o c i ical impo ance
in op imizing app op ia ion o en .
The abo e discussion o en should yield u he insigh in o he unique elemen s in CE
ha may c ea e compe i i e ad an age and supe io p o i o business en e p ises. I shows
ha he po en ial o new alue c ea ion and compe i i e ad an ages may o igina e om
di e en sou ces wi hin he i m and is qui e complex. To op imize bene i s om business
eju ena ion i ms need knowledge o esou ces, en ep eneu ial e o s and he app op ia ion
o en . Explo ing hese undamen s should hus ha e a g ea po en ial o adding u he in-
dep h insigh in o se e al dis inguishable sou ces o p o i when i ms engage in new business
models.
When i ms engage in co po a e en ep eneu ship se e al sou ces o p o i may hus be
ac i a ed as sugges ed by Table 1, which indica e a link be ween di e en ypes o en s and
2 En ep eneu ial en is o en called Schumpe e ian o Aus ian en based on hese wo pa s. These e ms migh hus
ha e di e en con en , bu is o en used in e changeably in li e a u e and he p ecise meaning o en migh di e
be ween au ho s (Schoemake , 1990). Fo ins ance, Aus ian en is o en ela ed o he a bi age pa o en ep eneu ial
en (Da och e al., 2005), bu some imes he En ep eneu ial and Schumpe e ian en is also used in he labeling his
pa o en .

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heo ies o CE. Fi s o all he e is a en ha based on paymen o unique esou ces. Second,
he e is en s ha based on paymen o inno a ion, isk and unce ain y. Finally addi ional
en s may be gained om supe io managemen and a bi age s a egies which op imize
app op ia ion o en ha may dissipa e o compe i o s. To ge u he insigh in o hese
di e en sou ces p o i and en his s udy has in eg a ed he EO, RBV and DC pe spec i es o
ge a be e unde s anding o how CE may le e age se e al sou ces o p o i (as explained by
Hammel and P ahalad, 1989). These pe spec i es all ocus on explaining how i ms may
sus ain hei compe i i e ad an age and gain supe io p o i s, bu hey also gi e each hei
dis inc piece o in o ma ion owa ds inc eased knowledge and unde s anding in o he
complex issue o how new alue is c ea ed, app op ia ed and sus ained. Table 1 gi es an
o e iew o a ious ypes o en and hei ela ion he scien i ic pe spec i es o EO, RBV
and DC. This illus a es ha he h ee pe spec i es may each be ela ed o hei unique sou ce
o en c ea ion in i ms. The EO, RBV and DC pe spec i es a e p esen ed and discussed in
he nex sec ions in his chap e .
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Table 1 Ren c ea ion and heo ies o CE
Types o en and hei con en
In elec ual
oo s
Theo ies o CE
Rica dian en
(May include Ma shallian o Pa e ian en s)
 Ren s ea ned om esou ces in ixed o limi ed
supply
 Paymen s o esou ces and capabili ies ha a e
unique o he i m and canno be inc emen ally
dissipa ed
 Rica dian en s migh be des oyed by a
Schumpe e ian inno a ion
Rica do,
1821
Ma shall,
1920
Resou ces-based iew
(RBV)
Explains e u ns o
unique esou ces
En ep eneu ial en
(Also called Schumpe e ian en and includes
Aus ian en )
 Is he ” alue c ea ed when economic ac o s
combine esou ces in new and di e en ways,
and when hese esou ce combina ions a e no
known ex an e” (Rumel , 1987)
 Ren s c ea ed when new esou ces o uses o
esou ces (new esou ce combina ions) is
disco e ed
 A e e u ns o isk and unce a in y (Al a ez,
2007)
 Composed o Rica dian and Aus ian en s;
paymen s o inno a ions and a bi age
Schumpe e ,
1934
Rumel , 1987
En ep eneu ial
o ien a ion (EO)
Explains e u ns o
inno a ions, isk and
unce ain y
Aus ian and/o monopoly en
(En ep eneu ial en ha is no Rica dian)
 Enables app op ia ion o en (Aus ian en s)
subjec o dissipa ion by imi a o s and
a ac ing en y by compe i o s (Al a ez and
Ba ney, 2004)
 DC p o ec s Aus ian en om compe i o s by
applying isola ing mechanisms
 Cap u e en by de eloping a bi age
s a egies (Ross and Wes g en, 2006)
Schumpe e ,
1934
Teece e al.,
1997
Dynamic capabili y
(DC)
Explains e u ns o
supe io managemen
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4 PERSPECTIVES OF CE
4.1 En ep eneu ial o ien a ion (EO)
Due o he inc eased a en ion o en ep eneu ship inside exis ing i ms he concep
en ep eneu ial o ien a ion (EO) has eme ged as an impo an de ice o s udying, desc ibing
and e alua ing en ep eneu ial e o s wi hin exis ing i ms he las wo decades. Lumpkin
and Dess (1996, p. 136) explain EO as “… he p ocesses, p ac ises, and decision-making
ac i i ies ha lead o new en y”, and u he ha i “… in ol es he in en ions and ac ions o
key playe s unc ioning in a dynamic gene a i e p ocess aimed a new- en u e c ea ion”. EO
is he e o e used o cha ac e ize a se o ela ed p ocesses in i ms, including a a ie y o
ac i i ies ela ed o iden i ica ion o new oppo uni ies and subsequen in es men in he
esou ce base (Al a ez and Buseni z, 2001). In sho , he li e a u e de ines EO as a i m le el
phenomenon (Lumpkin and Dess, 1996) and is also o en desc ibed as he mind-se o i ms
in ol ed in he pu sui o new en u es (Rauch, Wiklund, F ese and Lumpkin, 2004).
The ield seems o ag ee o concep ualize EO as ha ing om h ee (Co in and Sle in,
1989; Wiklund, 1999; Madsen, 2007) o i e dimensions (Lumpkin and Dess, 1996; Hughes
and Mo gan, 2007) ha migh a y independen ly o each o he . These a e 1) a p opensi y o
ac au onomously, 2) a willingness o inno a e, 3) a willingness o ake isks, 4) a endency o
ac agg essi ely owa ds compe i o s and 5) a p o-ac i i y owa ds ma ke oppo uni ies
(Lumpkin and Dess, 1996). He e au onomy is unde s ood as he independen ac ions
unde aken by en ep eneu ial leade s o eams o b ing abou a new en u e and see i
ealized. The inno a i e dimension cap u es he endency owa d emb acing and suppo ing
c ea i i y and expe imen a ion, echnological leade ship, no el y and R&D in he
de elopmen o p oduc s, se ices and p ocesses. The au onomy and inno a i eness
dimensions also ep esen an ale ness o p o i oppo uni ies and exe cising o supe io
judgemen and in ui ion in he i m (Ross and Wes g een, 2006). The isk- aking dimension
e lec s an accep ance o unce ain y and isk ela ed ac i i ies and is ypically cha ac e ized
by esou ce commi men o unce ain ou comes and ac i i ies. This e lec s ha alue is
c ea ed om he abili y o ake isk and bea unce ain y (Ross and Wes g een, 2006).
Compe i i e agg essi eness con eys he in ensi y wi h which a i m chooses o compe e and
i s’ e o s o su pass compe i o s. Finally, p o-ac i eness is ela ed o a o wa d-looking
pe spec i e whe e companies ac i ely seek o an icipa e oppo uni ies o de elop, and a e
eage o in oduce new p oduc s in he ma ke o ob ain i s mo e ad an ages and shape he
di ec ion o he en i onmen . I di e s om he compe i i e agg essi e dimension in ha i is
no di ec ed owa ds compe i o s bu ela es mo e o ma ke oppo uni ies (Lumpkin and Dess,
1996). As shown in Table 1 his pe spec i e may be linked o en ep eneu ial en which may
p o ide a u he unde s anding o why EO may lead o supe io pe o mance in i ms.
4.1.1 EO and pe o mance
The main assump ion behind he EO concep is ha all i ms all along an ac ion con inuum
ha anges om highly conse a i e o highly en ep eneu ial (Ba inge and Bluedo n,
1999). En ep eneu ial i ms a e explained as being isk aking, inno a i e and p oac i e,
whe eas mo e conse a i e i ms a e desc ibed as isk a e se, less inno a i e and ypically
adop a “wai and see pos u e” (Ba inge and Bluedo n, 1999). I ollows om his ha i ms
wi h an en ep eneu ial o ien a ion a e mo e likely o in oduce as well as gain om
inno a ions han mo e conse a i e i ms. The p edominan e idence in li e a u e also shows
ha i ms wi h a high sco e on en ep eneu ial o ien a ion pe o m be e han i ms wi h a
lowe sco e (Co in and Sle in, 1991; Wiklund, 1999; Wiklund and Shephe d, 2003; 2005;
9
Keh, Nguyen and Ng, 2007; Madsen, 2007). A s udy o business ounde s by F ank, Luege
and Ko unka (2007) ound a posi i e ela ionship be ween isk p opensi y and success. They
a ibu e his posi i e e ec o a g ea e isk p opensi y o be an indi ec lea ning e ec o
acing isk, and explain ha his is likely o inc ease bo h he “abili y and willingness o he
ounde o handle isky si ua ions” (F ank, Luege and Ko unka, 2007, p. 242).
Howe e , some scien is s a gue ha a high EO also migh lead o ad e se e ec s o he
i m in ce ain si ua ions (Sma and Conan , 1994; Ha , 1992). I is easy o unde s and ha
he isk dimension migh ha e bo h nega i e and posi i e e ec s on pe o mance. A
willingness o ake on mo e isk means a g ea e chance o gains as well as losses, and i
migh ake ime o lea n om i . P e ious s udies sugges ha an ex emely high EO also
migh ha e nega i e e ec s on pe o mance, indica ing ha a mode a ely high EO, including
mode a e isk, mode a e inno a ion and mode a e p o-ac i i y migh be mos p o i able
(Bhuian e al., 2005). Wo h no ing also is ha when acing u bulen ma ke s some esou ces
such as access o inancial capi al, migh indi ec ly in luence he ela ionship be ween EO and
pe o mance and in his way limi he ad e se e ec s o isk.
4.2 The esou ce based iew (RBV)
En ep eneu ship in ol es new esou ce combina ions (Bu gelman, 1983). He e he RBV
ocuses on he uniqueness o esou ces as c i ical o c ea ing new en s eams o i ms
(Al a es, 2007; Al a ez and Ba ney, 2004). The esou ce based iew (RBV) has eme ged as
an impo an pe spec i e and ins umen o unde s anding, inding and e alua ing possible
business oppo uni ies and esou ce needs in i ms (Pen ose, 1959; Ba ney, 2002). The RBV
builds on he ounda ion ha he c i ical elemen s o s a egic change and c ea ion o long un
compe i i e ad an ages o en a e ound in he in e nal esou ce con igu a ion o he i m
(Rumel , 1991; Bo ch, Huse and Sennese h, 1999). In he ea ly wo k, Pen ose (1959) a gued
ha e en i i ms ha e simila ac o endowmen s, he e exis di e en mechanisms o
esou ces combina ion and u iliza ion ha esul s in he e ogenei y among i ms. Mo e ecen
s a egy esea ch also indica es ha he e a e g ea e di e ences in p o i s be ween i ms
wi hin an indus y compa ed o he di e ences ha exis be ween indus ies. By iden i ying
and acqui ing esou ces ha a e c i ical o he de elopmen o demanded p oduc s, i ms may
ea n abo e no mal ea nings (We ne el , 1984). Thus he RBV app oach ocuses on en s
s emming om owne s o sca ce esou ces ha a e i m speci ic a he han he p o i s based
on posi ioning in p oduc ma ke s (Teece e al., 1997). The seminal elemen s o he RBV
app oach a e hen ound in Pen ose’s “The Theo y o he G ow h o he Fi m” (Pen ose
1959), bu he ea lies a emp s o desc ibe and apply i as an independen pe spec i e a e
ound in Rumel (1984), Teece (1984), We ne el (1984) and Ba ney (1986). Since hen,
esea ch wi hin he RBV has ecei ed g ea a en ion om schola s bo h empi ically and
concep ually and is now pe cei ed o be one o he mos widely accep ed heo e ical
pe spec i es wi hin he ield o s a egic managemen (P iem and Bu le , 2001; Newbe ,
2007).
Acco ding o he RBV he i m’s abili y o build new compe i i e ad an ages and explo e
new ma ke s depends on i s a ailable esou ces and i s abili y o de elop bo h physical and
human esou ces (Ba ney, 1991; 2002). The RBV concep ualizes he i m as a bundle o
esou ces, whe e di e en esou ces a y in hei impo ance o gene a ing added alue o he
i m. The main message in he RBV is ha i ms wi h aluable, a e and inimi able (VRI)
esou ces ha e he po en ial o achie e supe io pe o mance (Ba ney, 1991; 2002). This
means ha he esou ces mus possess some kind o alue o capaci y ha gi es ad an ages o
he i m compa ed o o he s. In his way some i ms may be be e i han o he s o pu sue
16
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