Opportunity, Resources, Team Profiles and Performance of Small Firms Paper
Three elements: quality of opportunity (O), i.e., timely and favorable circumstances giving the ﬁrm high odds of doing well on a sustainable basis; management of resources (R), i.e., the way the entrepreneur and her team manage the bundles of assets and capabilities that can be used for productive purposes; and quality of team (T), including the entrepreneur and her team drive the performance of entrepreneurial ﬁrms. The three elements combine and jointly eﬀect ﬁrm performance. In reality successful entrepreneurs take a rather holistic approach and manage O and R and T simultaneously as if the three elements are integral part of one large portfolio. Therefore the ﬁrm performance is better understood by looking at the entire portfolio rather than its parts.
To the extent that entrepreneur and his team have any managerial discretion, relative importance they assign to O and R and T reﬂect the choices that the management makes. And diﬀerent combinations of O and R and T can be thought of as diﬀerent approaches to the management of the ﬁrm.
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