Construction of Resource Base, Flexibility and the Process of Innovation

DOI: 10.5716/978-981-08-9493-1_IE47

Authors: Adriana Mohd. Rizal

Abstract:

Studies in resource-based view highlight the sources and kinds of resources utilized to achieve competitive advantage. However, there has been little discussion regarding the process of resource base construction. Moreover, the majority of setting in the discussion on resource development is centered on large firms, particularly on the final phase of resource development, when firm resources are transformed into capabilities that support the achievement of competitive advantage. As a result, theories that address the constructions of resource base in new firms, when resource construction is most critical, are still underdeveloped. Using the resource-based view, entrepreneurship process, structuration perspective of entrepreneurship, innovation process and flexibility concept as theoretical lenses and utilizing case study as the methodology of inquiry, this study examines the process of resource base construction, flexibility and innovation process in a biotechnology firm, One-Point Health lab. The findings indicate that the construction of resource base can be conceptualized as the process of mobilizing management experience in accumulating resources in new firms that drives the acts of constructing resources and commercializing innovations. As such, entrepreneur’s experience is a precondition for resource accumulation and development in a successful commercialization of innovation.

Keywords: resource-based view, construction of resource base,entrepreneurship process, structuration perspective ofentrepreneurship, innovation process and flexibility.