It is not a panacea! The conditional effect of bricolage in SME opportunity exploitation

Abstract

Previous literature has recommended that small and medium enterprises (SMEs) use bricolage to exploit opportunities. However, some authors have warned that the abuse of bricolage might extrude standardized resources from a firm's resource portfolio and lower firm performance. Basing itself on resource management, this article suggests that medium-sized firms benefit less from bricolage because they are more formalized and can afford standardized resources. If they rely too heavily on bricolage, they can fail to adopt the optimal solutions for the exploitation of recognizable opportunities. Data from 336 Chinese SMEs indicates that the moderating effect of bricolage on the relationship between opportunity recognition and SME performance is weaker in medium than in small-sized firms. This study contributes to the literature by elaborating how bricolage influences firms in distinct resource environments. R&D Management, 5,

Bricolage and MSEs in emerging economies

“…As they do so, they demonstrate their dextrous abilities in their entrepreneurial process. A key question for these enterprises is concerned with mobilising affordable resources (Guo et al, 2018). Indeed, entrepreneurs leading these enterprises would follow strategies that avoid the use of standard resources because they are often scare.…”

“…Existing scholarly works in entrepreneurship and organisational studies have utilised bricolage to delineate the entrepreneurial tendencies within firms operating in resource-penurious environments (see for example: Bojica et al, 2014; Garud and Karnoe, 2003; Holt and Littlewood, 2017; Vanevenhoven et al, 2011). The vast majority of these studies specifically point to entrepreneurial bricolage as essential for firm survival, development and growth (Davidsson et al, 2017; Powell and Baker, 2014; Senyard, 2015) with the exception of Guo et al (2018) who point to the conditional effect of bricolage in SME opportunity exploitation. Nonetheless, considering that in many emerging economies resources are generally depleted (Naudé, 2010), there is no reason not to believe that entrepreneurs who own/manage small enterprises utilise bricolage as their main response mechanism for mobilising resources.…”

“…For entrepreneurs in MSEs and business practitioners this review offers them applied and meaningful knowledge about how they can inexpensively enable their businesses to succeed, develop and grow in resource depleted environments by embracing bricolage (Guo et al, 2018). Furthermore, the review informs policy-makers about the need to establish entrepreneurship policies that enable the availability of key resources including, institutional support in the form of expertise, technical know-how, information and materials and financial, human and knowledge capital for small businesses to develop and grow.…”

The Relationship between Slack Resources, Resource Bricolage, and Entrepreneurial Opportunity Identification—Based on Resource Opportunity Perspective

“…These resources play a vital role in innovation and production. They can create uncertainty about results, increase their legitimacy, and thereby enhance the ability to combine with resources, thus identifying profitable opportunities about products or services in an unsaturated market [55]. Thus, we propose the following hypotheses:…”

Technology and Entrepreneurial Marketing Decisions During COVID-19

“…The option of an entrepreneurial process implies a dedication to market entry (Makridakis, 2017 ; Patrício and Rieder, 2018 ; Matejun, 2018 ). Entrepreneurs who want to start exploitation must concentrate on a variety of key factors that will trigger success within the competitive environment (Vasilchenko and Morrish, 2011 ; Guo et al 2018 ; Rogers et al 2020 ) during COVID-19, but face vulnerability in doing so in the evaluation of the new product, especially during the period of COVID-19 movement control.…”