Betting on the underdog : bricolage as an engine of resource advantage

Resource-based theory posits that firms achieve high performance by controlling resources\ud that are rare, valuable and costly for others to duplicate or work around. Yet scholars have been\ud less successful understanding processes and behaviours by which firms develop such resources.\ud We draw on the behavioral theory of bricolage from the entrepreneurship literature to suggest\ud one such mechanism by which firms may develop such resource-based advantages. The core of\ud our argument is that idiosyncratic bundling processes synonymous with bricolage behavior may\ud create advantageous resource positions by (i) allowing resource constrained firms to allocate\ud more of their limited resources to activities that they view as more strategically important, and\ud (ii) increasing the difficulties other firms face in trying to imitate these advantages. Based on this\ud reasoning we develop several hypotheses which we test in the context of several samples from a\ud large, longitudinal, Australian study of new firm development. The results support our arguments\ud that bricolage will improve a firms’ overall resource positions while generating more areas of\ud strong resource advantage and fewer areas of strong resource disadvantage. We find little\ud support, however, for our arguments that bricolage will make a firms’ key resource advantages\ud more difficult for other firms to imitate. We find some support for our argument that the role of\ud bricolage in creating resource advantages will be enhanced by the quality of the opportunity with\ud which a firm is engaged