Dollinger index

146 ENTREPRENEURSHIP

who perform the firm’s routines. The routines themselves become intangible resources

that may have the four attributes.

• New firms have advantages over incumbents when developing routines and capabilities in
  industries undergoing great changes. Older firms will have trouble changing routines to
  adapt to the environment; new firms can invent routines to fit the new realities. Of
  course, once the new venture has become established and its routines have been perfect-
  ed, it is just as open to assault from an even newer challenger, which highlights the trade-
  off between efficiency and flexibility.


• Some routines are widely distributed; others reside in the skills and abilities of
  one person. For example, Walt Disney World is a complex amalgam of entertainment, art,
  technology, traffic control, and highly motivated employees. In contrast, the junk bond
  underwriting at Drexel, Burnham, and Lambert in the 1980s was almost solely a func-
  tion of Michael Milken’s abilities.

Stage 3: Competitive Advantage

Stage 3 focuses on competitive advantage. Here we try to determine whether the com-

petitive advantages(s) identified in stages 1 and 2 may be sustained and if the profits and

FIGURE 4.3 Resource-Based Approach to Entrepreneurial Opportunity Assessment and Analysis

Identity and classify six types of resources

Determine controlled and controllable resources

Analyze relative strengths and weaknesses

Consider how to utilize opportunities

Stage Focus Actions

Competitive

Advantage

Resources

Identify skills, knowledge, abilities

Determine controlled and controllable capabilities

Analyze relative strengths and weaknesses

Consider how to utilize opportunities

Analyze resources and capabilities

(a)Potential for SCA

(b) Appropriability

Select a strategy that exploits

(a) and (b) above relative to environment

Identity resource gaps

Invest and replenish resources

Strategy

Capabilities

1

2

3

4

5 Feedback

½

½

½

½

½

¾