Supply chain capabilities and new venture growth

Abstract

We build on dynamic capability (DC) theory and apply inductive case study research to shed light on how new venture manufacturing firms develop and nurture supply chain (SC) capabilities. Our findings discern SC capabilities related to dimensions of DCs (sense, integrate, develop, reconfigure) and show how these SC capabilities evolve throughout new venture life cycle stages. We find that SC capabilities steadily substitute improvisation and imitation. Our study also reveals that SC capabilities serve as dual-purpose capabilities with an operational as well as a dynamic role. On the one hand, they are needed to operate the supply chain and enable the development and reconfiguration of the internal resource base. On the other hand, they allow for the sensing and integration of external resources and create new or update and modify existing SC capabilities. New venture firms can benefit from our study by mimicking the development of the different SC capabilities.