The Transformation of Internal Resources into Performance in Early-Stage Ventures

Abstract

This conceptual study explains how founder-based resources (entrepreneurial knowledge, skills, and networks) are transformed into firm performance in early-stage ventures operating under resource scarcity. Integrating the Resource-Based View (RBV), which addresses “what resources a venture possesses,” with Resource Orchestration, which explains “how these resources create value,” and with Entrepreneurial Orientation (EO), which clarifies “under what conditions these processes are strengthened,” the study proposes a three-stage causal mechanism. Specifically: (i) founder-based resources enhance performance through the processes of resource discovery, combination, and deployment; (ii) this relationship represents full mediation, indicating that resources influence performance solely through orchestration processes; and (iii) EO dimensions (innovativeness, risk-taking, and proactiveness) moderate and amplify this indirect effect. Rather than presenting empirical findings, the study offers a conceptual model arguing that value creation stems not from resource abundance but from the effective managerial orchestration of scarce assets. Theoretically, it extends RBV by embedding process-level reasoning; practically, it offers insights for designing accelerators, mentorship structures, and network-based support mechanisms aligned with the stages of resource orchestration.