Dynamic capabilities for venture innovation: a microfoundation study of technology-based entrepreneurs

Abstract

Dynamic capabilities have long been considered essential organizational features enabling firms to sense, seize and reconfigure assets in order to obtain competitive advantage and achieve innovation. However, in the context of entrepreneurship, dynamic capabilities have not been sufficiently studied. This study bridges the gap by looking into individual characteristics of technology-based entrepreneurs that can provide microfoundations of dynamic capabilities necessary for new venture innovation. The study considers entrepreneurs pre-venture experience, the level of commitment, risk-taking propensity, type of motivation and problem-solving skills as important characteristics giving entrepreneurs ability to sense, seize and reconfigure entrepreneurial opportunities, and empirically examines their impact on new venture innovation in the context of technology-based nascent entrepreneurs in the U.S. The findings suggest that prior industry experience plays an important role in enabling the identification of new opportunities, while intrinsic motivation is essential for its successful

reconfiguration.