Resource valuation and capital acquisition in technology-based entrepreneurial ventures: A three-essay dissertation

Established organizational theories often need significant modifications in order to explore emergent phenomena. In the resource-based theory of the firm, valuable resources are the foundation of superior economic performance among firms. Among young technology-based ventures, however, current strands of resource-based logic are not well-suited for exploring why some ventures are more successful than others. At the center of the conflict is the way resource-based theory suggests managers and/or entrepreneurs should value resources. Since technology-based ventures play a critical role in the creation of new economic wealth in modern economies, and many critical resource decisions are made during the early-stages of a venture's lifecycle, resource-based theory needs further development in order to resolve this conflict.;Based on these issues, in the following essays, several conceptual challenges in resource-based theory are illuminated and resolved. First, given the limits of the undervalued resource perspective for technology entrepreneurs, alternative methods for generating superior economic performance over the long-run must be developed. Essay One proposes a resource co-specialization model as an alternative. Second, new methods for valuing resources must be developed for technology entrepreneurs given the inherent limitations of current methods of resource valuation. Essay Two explores the early-stage capitalization process as a mechanism whereby resource valuation signals can be seen. Third, since firms (even young technology-based ventures) are bundles of resources, trade-offs among these resources (i.e., resource-based weaknesses offsetting firm strengths) may account for performance differences among a population of firms. Essay Three explores trade-offs between a young venture's managerial and technological resources and their effect on venture undercapitalization.