New venture formation: A capability configurational approach

The formation of new ventures is affected by multiple, interrelated capabilities, resulting in configurations of capabilities. Adopting a configurational approach, our study aims to explore how various combinations of ventures' ordinary capabilities (i.e., resources and competencies), ventures' dynamic capabilities (i.e., sensing and seizing), and founders' dynamic managerial capabilities (i.e., human capital, social capital, managerial cognition) elucidate the successful formation of new ventures in both stable and dynamic environments. The results of a Qualitative Comparative Analysis of 299 solo-founded ventures reveal six capability configurations leading to new venture formation. In particular, we have identified four archetypes of ventures, the formations of which are shaped as a result of specific combinations of capabilities: capability driven, resource driven, bricoleur, and agile. Our configurational approach reveals that different ventures can achieve the same result through various unique combinations of capabilities.