Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities

Grichnik, Dietmar; Brinckmann, Jan; Singh, Luv; Manigart, Sophie

doi:10.1016/j.jbusvent.2013.02.006

Cited by 140 publications

(190 citation statements)

References 70 publications

Supporting

Mentioning

172

Contrasting

Unclassified

Order By: Relevance

“…Bootstrapping techniques are used more frequently by entrepreneurs with higher levels of managerial and business experience (Grichnik et al 2014), and bootstrapping is consistent with widely implemented lean business model methodologies (Jones and Jayawarna 2010;Ries 2011). Bootstrapping techniques are therefore adopted by design rather than necessity, as increasing capital efficiency is the principal intention (Ries 2011), rather than compensating for lack of resources (Winborg 2009 (Carayannopoulos 2009).…”

Section: Resourcing High-technology Start-upsmentioning

confidence: 81%

“…The latter are particularly important for resourcing new ventures (Jones and Jayawarna 2010), although past entrepreneurial experience does not have a significant impact (Grichnik et al 2014).…”

Section: Resourcing High-technology Start-upsmentioning

confidence: 99%

“…Bootstrapping techniques are used in firms of all ages (Ebben and Johnson 2006), and are more intensely used by nascent entrepreneurs (Grichnik et al 2014) and in new enterprises (Jones and Jayawarna 2010). It is therefore postulated that bootstrapping is used by necessity, although a number of studies suggest that, judiciously applied, bootstrapping is an effective resource management strategy (Vanacker et al 2011).…”

Section: Resourcing High-technology Start-upsmentioning

confidence: 99%

“…We address the dearth in the literature identified by Grichnik et al (2014) and Winborg (2009) by investigating heterogeneity in resourcing strategies in hightechnology start-ups with a sample that is significantly younger than that of earlier studies (e.g. Malmström 2014).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Seeding the cloud: financial bootstrapping in the computer software sector

Bhaird

Lynn

2015

Venture Capital

View full text Add to dashboard Cite

Seeding the cloud: Financial bootstrapping in the computer software sector.This study investigates resourcing of computer software companies that have adopted cloud computing for the development and delivery of application software. Use of this innovative technology potentially impacts firm financing because the initial infrastructure investment requirement is much lower than for packaged software, lead time to market is shorter, and cloud computing supports instant scalability. We test these predictions by conducting in-depth interviews with founders of 18 independently owned nascent enterprises, of which three quarters have adopted cloud computing. We identify particular bootstrapping methods used by start-ups in the computer software sector. Cloud computing enables firms to develop and launch products with minimal resources, reducing barriers to entry, with consequent increased competition. The primary business bootstrapping technique is foregoing wages, supplemented by small amounts of grant funding. Customers are a source of knowledge and expertise for product development, which occurs in an iterative process. Product bootstrapping techniques have changed in response to technological innovation, although methods to acquire tangible assets are identical over time. Astutely applied, financial bootstrapping is a resource management strategy essential to the growth and survival of high technology firms.Keywords: software industry; bootstrapping; cloud computing; social networks; private equity; business angels; disruptive innovation IntroductionHigh technology based firms are an important source of employment creation, economic growth and technological innovation (Colombo et al. 2010;Freear, Sohl, and Wetzel 2002;North, Baldock, and Ullah 2013;Rasmussen and Sørheim 2012). Central to the development of a high technology small firm sector is a considerable level of start-up activity and new firm formation. A barrier to this expansion, however, is the ability of firm founders to acquire adequate finance for their nascent ventures (Basu and Parker 2001;North, Baldock, and Ekanem 2010). This is particularly evident for introduction of technological innovation for new firms in the computer software sector.We contextualise our findings in relation to the literature by comparing bootstrapping techniques used by firms in our sample with those used by computer software firms studied by Wetzel (1995), andGirling (2004).We address the dearth in the literature identified by Grichnik et al. (2014) Resourcing implications for software firms adopting cloud computingCloud computing refers to applications delivered as services over the internet, and the hardware and systems software in datacentres that provide those services (Armbrust et al. 2009). Thus, cloud computing may be conceptualised as a combination of three layers of abstraction: software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) (Weinhardt et al, 2009, Vaquero et al, 2008. The first layer is the focus of our study, and ...

show abstract

Section: Resourcing High-technology Start-upsmentioning

confidence: 81%

Section: Resourcing High-technology Start-upsmentioning

confidence: 99%

Section: Resourcing High-technology Start-upsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Seeding the cloud: financial bootstrapping in the computer software sector

Bhaird

Lynn

2015

Venture Capital

View full text Add to dashboard Cite

show abstract

“…According to Grichnik, Brinckmann, Singh and Manigart (2013), entrepreneurs with greater levels of human capital in different areas are likely to employ more bootstrapping activities. Entrepreneurs with managerial experience and those who have pursued higher levels of academic education or specific business training engage in bootstrapping to a greater extent (Grichnik et al 2013).…”

Section: Factors Affecting the Use Of Financial Bootstrapping Methodsmentioning

confidence: 99%

Smme Attitudes Towards Financial Bootstrapping: A Perspective From a Developing Economy

Zwane

Nyide

2017

Proceedings of the 6th Business &Amp; Management Conference, Geneva

View full text Add to dashboard Cite

show abstract

Business experience or Financial Literacy? Which one is better for opportunity recognition and superior performance?

Anwar

Ullah

2020

Bus Strat Dev

View full text Add to dashboard Cite

Recognition of useful opportunities is very crucial for small and medium‐sized enterprises' (SMEs') survival and growth in the competitive environment. However, the majority of SMEs cannot easily recognize new opportunities in the turbulent markets due to a lack of managerial competencies and knowledge. Several studies have been carried out to unleash the determinants of opportunity recognition that configure SMEs' success, but the results are disjointed. In particular, the mediating role of opportunity recognition between business experience, financial literacy, and SME performance has been missed. This study aims to test if either financially literate or experienced managers can recognize new opportunities that result in high performance. For testing the hypotheses, we surveyed 232 Pakistani SMEs from the manufacturing, trading, and service sectors. After performing the structural equation modeling, we found that financial literacy and business experience are the substantial prognosticators of opportunity recognition and SMEs' performance. Opportunity recognition shows a partial mediating role between financial literacy and SMEs performance as well as between business experience and SMEs performance. However, this research endorses that business experience is more vital for high performance as compared to financial literacy whereas in terms of opportunity recognition financial literacy is more crucial as compared to experience. This study recommends the enterprises to hire the financially literate and experienced managers as both display a prominent role in the identification of opportunities and high performance. Further implications are discussed.

show abstract

Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities

Cited by 140 publications

References 70 publications

Seeding the cloud: financial bootstrapping in the computer software sector

Seeding the cloud: financial bootstrapping in the computer software sector

Smme Attitudes Towards Financial Bootstrapping: A Perspective From a Developing Economy

Business experience or Financial Literacy? Which one is better for opportunity recognition and superior performance?

Contact Info

Product

Resources

About