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Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth
Authors:Robert S. Nason  Johan Wiklund  Alexander McKelvie  Michael Hitt  Wei Yu
Affiliation:1. John Molson School of Business, Concordia University, 1445 De Maisonneuve Boulevard, West, Montréal, Québec H3G 1M8, Canada;2. Department of Entrepreneurship and Emerging Enterprises, Whitman School of Management, Syracuse University, 721 University Ave., Syracuse, NY 13244, USA;3. Mays Business School, Texas A&M University, College Station, TX 77843-4221, USA;4. Texas Christian University, College Station, TX 77843-4221, USA;5. Department of Industrial Systems Engineering and Management, NUS Faculty of Engineering, National University of Singapore, 9 Engineering Drive 1, 117575, Singapore
Abstract:While established firms can efficiently manage their resource portfolio, new ventures must construct resource boundaries by assembling resources. In doing so, new ventures are often pushed to utilize resources that are owned by other actors. These inter-organizational relationship strategies do not expand organizational boundaries, but rather create permeable boundaries. We theorize that boundary permeability confers greater access to resources, but limits control over them. Therefore, new ventures face a risky option: utilize fewer but fully controlled resources or access a broader range of resources under limited control. We examine the effects of R&D boundary permeability across growth dimensions of sales, profitability, and employees using a sample of young knowledge intensive ventures. In doing so, we explore early stage boundary management decisions and reveal opportunities and threats to opening venture boundaries.
Keywords:New venture growth  Inter-organizational relationships  Resource orchestration  R&D  Boundary permeability gras
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