Linking resource mobilization approaches and venture performance in highly resource-constrained environments

Abstract

Drawing on resource orchestration and social network theories, this study examines the relationships between bricolage, optimization, and new venture performance. We argue that optimization (i.e. standard application of resources acquired from resource markets) increases performance whereas bricolage (i.e. improvisation and unconventional resource applications) causes the opposite effect. We also argue that the effect of these resource mobilization approaches is contingent upon entrepreneurs’ network diversity. Using survey data from agricultural ventures in Nigeria, we found support for our propositions. The findings also show that entrepreneurs’ social capital affects the value of resource orchestration in relationship-based economic systems. We discuss the theoretical and practical implications of these findings.