Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship

Arend, Richard J.

doi:10.1007/s11187-012-9461-9

Cited by 176 publications

(179 citation statements)

References 70 publications

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“…Resource accretion is therefore the process through which external assets are grafted on to the firm's existing resource capacity, thus expanding the range of available solutions. A number of recent studies have made significant contributions to the understanding of dynamic capabilities in entrepreneurial firms (Arend 2014;Corner and Wu 2012;Lanza and Passarelli 2014). In this research, we have extended this work by identifying the microfoundations of nascent dynamic capabilities in small firms (Figure 1).…”

Section: Discussion: Expanding the Entrepreneurial Solution Spacementioning

confidence: 86%

“…They still do not specifically address how such resources are made available in order to develop the DECs they describe. Arend (2014) addresses the question of whether or not entrepreneurial ventures can develop dynamic capabilities by carrying out a survey of 307 US-based SMEs. According to Teece and Pisano (1994), building a DC can take decades and, implicitly, entrepreneurial ventures cannot develop such capabilities (Arend 2014, 34).…”

Section: Resources and Dynamic Capabilitiesmentioning

confidence: 99%

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Developing dynamic capabilities through resource accretion: expanding the entrepreneurial solution space

Macpherson

Herbane

Jones

2015

Entrepreneurship & Regional Development

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We report our findings from the analysis of crisis episodes that resulted in the development of new capabilities in eight small firms. When dealing with resource constraints in periods of crisis, entrepreneurs engaged in a number of actions to develop their firms' capabilities. By accreting resources such as knowledge, skills and other assets, entrepreneurs were able to expand their repertoire of potential solutions and change the firm's learning trajectory. Our contribution is to describe the process of resource accretion (the gradual accumulation and integration of resources) through grafting and bonding of capabilities into the firm's ambit, which is dependent on the proximities, salience and relationships of resources. We observe three patterns within the accretion pathways of the eight firms in the study, namely the combination of coping mechanisms, the extension of networks, and the reprisal of previously successful solutions. These activities support resource accretion and the subsequent expanded solution space where entrepreneurs begin the process of embedding new capabilities. Such coping routines are necessary antecedents for the development of nascent dynamic capabilities in small firms.

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Section: Discussion: Expanding the Entrepreneurial Solution Spacementioning

confidence: 86%

Section: Resources and Dynamic Capabilitiesmentioning

confidence: 99%

Developing dynamic capabilities through resource accretion: expanding the entrepreneurial solution space

Macpherson

Herbane

Jones

2015

Entrepreneurship & Regional Development

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“…However, beyond the tentative suggestions by Koryak et al (2015) and Lockett et al (2013), the potential influence of self-efficacy on dynamic capabilities in the small business and entrepreneurship domain has not been considered. This is perhaps unsurprising given that dynamic capabilities research has historically focussed mainly on larger enterprises (Koryak et al, 2015;McKelvie and Davidsson, 2009) with only a small body of literature focussing on dynamic capabilities in SMEs (Battisti and Deakins, 2015;Rice, Liao, Galvin and Martin, 2015;Woldesenbet, Ram and Jones, 2011) and micro-enterprises (Arend, 2014;Kevill, 2014;Vickers and Lyon, 2014). Micro-enterprise, however, offers a unique context (Devins, Gold, Johnson and Holden, 2005;Kelliher and Reinl, 2009) deserving of more attention (Jaouen and Lasch, 2015;Kelliher and Reinl, 2009).…”

Section: Perceived Self-efficacy In the Small Business And Entreprenementioning

confidence: 99%

Perceiving ‘capability’ within dynamic capabilities: The role of owner-manager self-efficacy

Kevill

Trehan

Easterby‐Smith

2017

International Small Business Journal: Researching Entrepreneurs

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This article combines two popular, yet separate concepts: dynamic capabilities and self-efficacy. Both are concerned with ability/capability and offer potentially valuable synergies. As such, our in-depth qualitative study based in three micro-enterprises in the United Kingdom investigates, ‘what role(s) may owner-manager perceived self-efficacy play as a micro-foundation of dynamic capabilities in micro-enterprises?’ Our findings show that perceived self-efficacy can influence dynamic capability enactment in multifaceted ways and even suggest that in some cases, perceived self-efficacy is a crucial component of dynamic capabilities, without which there may be no such capability. These insights help open up the black box of dynamic capabilities by contributing important knowledge to the growing body of research into the micro-foundations of such capabilities. Furthermore, our study illuminates the importance of idiosyncratic micro-foundations of dynamic capabilities in micro-enterprises and expands extant knowledge of the potential effects of self-efficacy in the small business and entrepreneurship domain.

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“…To assure that these items were reliable [93], appropriate [92], and valid [94], we conducted a series of pilot interviews during questionnaire development, and adopted careful backward translation procedures from Dutch to French and vice versa. Through such a pretesting phase, we could explicitly pay attention to wording, reducing item ambiguity [95]. As a robustness check, we ran all models reported below for both language sub-samples separately, producing results that were completely sign-consistent (results available upon request).…”

Section: Dependent Variablesmentioning

confidence: 99%

The Power Paradox: Implicit and Explicit Power Motives, and the Importance Attached to Prosocial Organizational Goals in SMEs

et al. 2017

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Abstract:We examine the fundamental tension between explicit and implicit power motives; and their combined impact on the importance attached to prosocial organizational goals in small businesses (SMEs). We show that key decision-makers with a dominant implicit power motive attach more importance to the prosocial goals of job creation and taking care of the environment in their businesses. However, we reveal that this positive relationship is moderated by their explicit power motive. Once decision-makers in SMEs consciously seek for power, the positive relationship is neutralized. With these results, we highlight the conceptual and methodological differences between implicit and explicit power motives. We could obtain these results because we developed and validated an innovative implicit motive measure-the Shortened Pictorial Attitude Implicit Association Test (SPA-IAT). Contrary to the currently available implicit motive measures, the SPA-IAT is fast and easy to use and analyze, which makes this novel instrument well suited for research in business settings.

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Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship

Cited by 176 publications

References 70 publications

Developing dynamic capabilities through resource accretion: expanding the entrepreneurial solution space

Developing dynamic capabilities through resource accretion: expanding the entrepreneurial solution space

Perceiving ‘capability’ within dynamic capabilities: The role of owner-manager self-efficacy

The Power Paradox: Implicit and Explicit Power Motives, and the Importance Attached to Prosocial Organizational Goals in SMEs

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