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Initial resource assembly in new ventures: does location matter?
Tatiana Manolova1, Candida Brush, Linda Edelman
1Bentley University, Massachusetts, USA. tmanolova@bentley.edu
New venture success hinges on location. Starting a business away from home leads to assembling more physical, financial, and organizational resources compared to home-based startups.
Area of Science:
- Entrepreneurship
- Business Management
- New Venture Creation
Background:
- Crucial early decisions significantly impact new venture success.
- The choice between a home-based or separate location is a key initial decision for entrepreneurs.
- Resource assembly, the initial step in building a resource base, is vital for new firms.
Purpose of the Study:
- To examine the impact of firm-location decisions on the resource assembly process.
- To understand how the choice of business location influences the acquisition of essential resources.
- To analyze the differences in resource profiles based on whether a venture is home-based or located elsewhere.
Main Methods:
- Comparative analysis of resource assembly processes.
- Examination of resource profiles based on firm location (home vs. separate).
Main Results:
- Significant differences in resource profiles were observed based on firm location.
- Businesses operating from separate locations (away-based) assembled higher quantities of resources.
- Away-based firms demonstrated superior assembly of physical, financial, and organizational resources.
Conclusions:
- Firm-location decisions critically influence the resource assembly process for new ventures.
- Establishing a business in a separate location facilitates the assembly of a broader and more substantial resource base.
- Entrepreneurs should consider location as a strategic factor for optimizing resource acquisition and enhancing venture success.