The inherent conflicts between venture capital investors and entrepreneurs are reflected in perception of trust and causes for strategic reorientation.

This study note explores the major causes that stimulate Radical Strategic Change (RSC) in Israeli high technology new ventures. It explores the factors that make RSC successful in these ventures, based on the Resource-Based-View (RBV). A multiple case study methodology was applied on four Israeli-based start-up companies that experienced both an un-favorable and a favorable RSC, sequentially. Our findings suggest that the level of resources was the major impetus for these RSCs, and that the alignment of resources to the environment yielded the desired performance goals for these venture. Further research is needed to validate the findings of this study.

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