Resource orchestration in start‐ups: Synchronizing human capital investment, leveraging strategy, and founder start‐up experience

Symeonidou, N and N Nicolaou (2018). Resource orchestration in start‐ups: Synchronizing human capital investment, leveraging strategy, and founder start‐up experience, Strategic Entrepreneurship Journal, 12(2): 194-218.

We examine the performance effects of resource orchestration in start‐ups by investigating three key contingencies of resource orchestration: human capital (HC) investment relative to rivals, leveraging strategy, and founder start‐up experience. We find that deviating from rivals’ resource investments (either above or below the industry mean) negatively affects performance, while conforming to the norms set by rivals positively affects performance. However, we also find that a higher investment in HC relative to rivals is less detrimental when aligned with a leveraging strategy focused on innovation. In addition, we find evidence that this relationship is conditioned by the entrepreneurial experience of the founders themselves. That is, experienced founders benefit from actively orchestrating HC investments relative to rivals with a strategy focused on innovation.