Management and Schumpeterian Resource Recombination

H. H. Stevenson suggests that firms’ management practices range along a spectrum from highly entrepreneurial to highly administrative. At the entrepreneurial end are promoter firms with a focus on new opportunities and at the administrative end are trustee firms with an inward focus on resources controlled. Theory suggests that entrepreneurial management practices should result in entrepreneurial activities. i.e. a propensity to create new combinations of resources through which new products or services may be introduced or through which new markets may be entered. However, hitherto these propositions have not been empirically tested. In this paper we put them to an empirical test by examining how entrepreneurial management practices affect entrepreneurial activities, i.e., resource recombinations.