SOCIAL SYSTEM VIEW ON DEVELOPING DYNAMIC CAPABILITIES FOR KNOWLEDGE-INTENSIVE ENTREPRENEURSHIP

In this paper we tackle the question of developing dynamic capabilities in knowledge intensive industries by entrepreneurs without initial industry-specific knowledge. We examine six in-depth cases of parent-driven drug development in bio-tech industry, and study how the yesterday’s parents become entrepreneurs and develop market entry capabilities of their firms. Previous research has highlighted the role of knowledge and experience for developing dynamic capabilities, making these cases especially interesting. By bridging the dynamic capabilities and social systems literatures, we aim to extend our knowledge about micro-foundations of entrepreneurial (market-entry) dynamic capability, and contribute to the entrepreneurship literature by better understanding the nature of new venture development in knowledge-intensive industries.