Acquisition of resources, formal organization and entrepreneurial orientation of new ventures

doi:10.1108/17561390910916877

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Journal of Chinese Entrepreneurship

ISSN: 1756-1396

Online from: 2009

Subject Area: Enterprise and Innovation

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Acquisition of resources, formal organization and entrepreneurial orientation of new ventures

Document Information:
Title:	Acquisition of resources, formal organization and entrepreneurial orientation of new ventures
Author(s):	Niu Fang, (Business School, Nankai University, Tianjin, People's Republic of China), Zhang Yuli, (Business School, Nankai University, Tianjin, People's Republic of China), Xue Hongzhi, (Business School, Nankai University, Tianjin, People's Republic of China)
Citation:	Niu Fang, Zhang Yuli, Xue Hongzhi, (2008) "Acquisition of resources, formal organization and entrepreneurial orientation of new ventures", Journal of Chinese Entrepreneurship, Vol. 1 Iss: 1, pp.40 - 52
Keywords:	Business formation, China, Entrepreneurialism, Innovation, Organizational structures, Resource management
Article type:	Research paper
DOI:	10.1108/17561390910916877 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Acknowledgements:	This paper was sponsored by the National Natural Science Foundation of China (No. 70732004). Comments and suggestions from reviewers have been very helpful. The authors thank the China Association of SMEs and SMEs research center of Nankai University for providing the data, and also thank Mrs. Jun Wang for her translation work.
Abstract:	Purpose – The purpose of this paper is to assess the impact of the acquisition of resources and formal organization on entrepreneurial orientation (EO) of new ventures. Design/methodology/approach – The research was conducted using an original data set of 199 new ventures in China. The data were analyzed through regressing models. Findings – It was found that new ventures experiencing difficulty in acquiring resources have higher levels of EO; formal organization is associated with the proactiveness dimension of EO significantly and positively. Research limitations/implications – First, the measures of EO were mainly used to study established firms. The measures of EO may need to be modified to take into account new ventures' uniqueness. Second, this study focused on new ventures operating in a specific geographical region, China. Practical implications – New ventures should build their formal management systems so that they can integrate as organic organizations to engage in entrepreneurial activities. New ventures lack regulations and their development mainly depends on entrepreneurs. The formal regulations can help new ventures better use and integrate the power of the whole organization systems to identify and explore external opportunities. Originality/value – Research on EO has focused on established firms while the EO of new ventures is seldom studied. These findings indicate the uniqueness of new ventures and contribute to a better understanding of their behaviors.