Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth

Robert S. Nason, Johan Wiklund, Alexander McKelvie, Michael Hitt, Wei Yu

Research output: Contribution to journalArticle

4 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)63-79
Number of pages17
JournalJournal of Business Venturing
Volume34
Issue number1
DOIs
StatePublished - Jan 2019

Keywords

  • Boundary permeability gras
  • Inter-organizational relationships
  • New venture growth
  • R&D
  • Resource orchestration

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation

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