Assembling resources when forming a new business

Publication year: 2011
Source: Journal of Business Research, In Press, Corrected Proof, Available online 12 June 2011

Francesco, Ciabuschi , Andrea, Perna , Ivan, Snehota

Every business builds on a specific set of resources. New businesses in particular have to assemble external resources that are mostly new to them. This resource assembly requires developing business relationships with other actors that control and can provide the needed resources. Adopting a resource interaction perspective, this paper examines a case of a new business venture in the automobile industry. The case study shows that when forming a new business the actors possess only partial knowledge of how to assemble the resources. Consequently, the actors must engage in extensive adaptation and interaction with others to enact workable resource interfaces…

 Research highlights: ► The study approaches new business formation from a resource interaction perspective. ► New business requires assembling resources controlled by external actors. ► Resource assembly requires developing business relationships with other actors. ► New business formation is a collective, nonlinear and onerous process. ► Business opportunities are collectively enacted.