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How entrepreneurs use symbolic management to acquire resources

Author: Zott, Christoph ; Huy, Quy NguyenINSEAD Area: Entrepreneurship and Family Enterprise ; StrategyIn: Administrative Science Quarterly, vol. 52, no. 1, March 2007 Language: EnglishDescription: p. 70-105.Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: From a two-year inductive field study, we find that entrepreneurs are more likely to acquire resources for new ventures if they perform symbolic actions. We identify four symbolic action categories that facilitate resource acquisition: conveying the entrepreneur's personal credibility, professional organizing, organizational achievement, and the quality of stakeholder relationships. Our data show that entrepreneurs who perform a variety of symbolic actions from these categories skillfully and frequently obtain more resources than those who do not. We theorize how the various symbolic action categories shape different forms of legitimacy, and we propose several factors that moderate the relationship between symbolic management and resource acquisition.
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From a two-year inductive field study, we find that entrepreneurs are more likely to acquire resources for new ventures if they perform symbolic actions. We identify four symbolic action categories that facilitate resource acquisition: conveying the entrepreneur's personal credibility, professional organizing, organizational achievement, and the quality of stakeholder relationships. Our data show that entrepreneurs who perform a variety of symbolic actions from these categories skillfully and frequently obtain more resources than those who do not. We theorize how the various symbolic action categories shape different forms of legitimacy, and we propose several factors that moderate the relationship between symbolic management and resource acquisition.

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