Chapter 9 Entrepreneurs’ Communicative Behaviour in Technology-Based versus Service-Based Businesses — A Resource Dependence Perspective

To enhance the understanding of entrepreneurial communication strategies in the start-up phase of the business, a resource dependence perspective is presented. Resources can be categorized in several ways. Penrose (1959) , one of the pioneers in the resource-based view, and the subsequent work of, for example, Wernerfelt (1984) and Barney (1991) , have brought the individual, the entrepreneur and especially resources within the business into focus. The process school of the resource-based view focuses on processes and activities and internal strategic capabilities ( Tucker, Meyer, & Westerman, 1996 ). Furthermore, capabilities are based on developing, carrying and exchanging information through the business's human capital ( Tucker et al., 1996 ). Grant (1991, p. 122) defined such capabilities as ‘ complex patterns of coordination and cooperation between people, and between people and (tangible) resources ’. Baum, Locke, and Smith (2001) and Lee, Lee, and Pennings (2001) found that new businesses’ internal capabilities are the primary determinants of the businesses’ performance. One of the intangible resources could be a business reputation ( Deephouse, 2000 ). A positive reputation creates advantages in order to obtain, for example, financial capital.