Too Much of a Good Thing? The Nonlinear Effect of Dynamic Capabilities on New Venture Survival

Thomas Ritter, Achim Walter, Monika Sienknecht, Nicole Coviello

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

This research conceptualizes and then shows how one type of dynamic capability - network capability - does not always have a positive relationship with the survival of new technology-based ventures. Using data from a survey of 280 new ventures combined with secondary and patent data, we show that although network capability is beneficial at low to intermediate levels, it decreases new venture survival at high levels. The influence of network capability on survival also decreases under conditions of high environmental hostility but no moderation effect is found for environmental dynamism. Our results suggest that investment in dynamic capabilities in new ventures should be optimized, not maximized, for survival. Also, environmental hostility is more relevant than dynamism for entrepreneurs in new ventures to monitor.
Original languageEnglish
Title of host publicationProceedings of the Seventy-eighth Annual Meeting of the Academy of Management
EditorsGuclu Atinc
Number of pages6
Place of PublicationBriar Cliff Manor, NY
PublisherAcademy of Management
Publication date2018
Article number241
DOIs
Publication statusPublished - 2018
EventThe Academy of Management Annual Meeting 2018: Improving Lives - Chicago, United States
Duration: 10 Aug 201814 Aug 2018
Conference number: 78
http://aom.org/annualmeeting/

Conference

ConferenceThe Academy of Management Annual Meeting 2018
Number78
CountryUnited States
CityChicago
Period10/08/201814/08/2018
Internet address
SeriesAcademy of Management Proceedings
ISSN2151-6561

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