Document Type : Research Paper
new venture creation, Faculty of Entrepreneurship, University of Tehran, Tehran, Iran
Associate Professor, Faculty of Entrepreneurship, University of Tehran, Iran
Department of Entrepreneurship, Faculty of Economic, Management and Accounting, University of Sistan and Baluchestan, Iran.
Resource limitation has always been an issue discussed in different fields of science. By using dynamic capabilities, companies can respond to environmental fluctuations despite their limited resources. This study aims to understand the development of dynamic capabilities in new ventures. The methodology is a qualitative multiple-case study analysis. It draws on in-depth interviews with 15 new ventures in the field of IT selected using purposive sampling. The results identified four important factors for the development of dynamic capabilities in new ventures, which are the antecedents of dynamic capability development: characteristics of the management team, resources and capabilities of the firm, strategic orientations, and the environment. These improve the performance of the firm through radicalness. The results provide valuable insights for managers and researchers on creating and developing dynamic capabilities in new ventures.