Early-stage start-up hiring: the interplay between start-ups’ initial resources and innovation orientation

Vera Rocha and Luca Grilli

Small Business Economics, 2024, vol. 62, issue 4, No 16, 1668 pages

Abstract: Abstract Start-up firms often operate under high levels of uncertainty and resource constraints, which makes hiring a particularly challenging process. Integrating perspectives from the resource- and competence-based views of the firm and signaling theory, we posit that founders’ start-up experience and the initial presence of corporate or university shareholders can mitigate challenges associated with hiring and facilitate the recruitment of employees in the nascent stages of a firm. Moreover, we propose that early-stage hiring will be more likely in start-ups that combine such a strong set of initial competences and resources with a strategic orientation towards innovation. We find support for our hypotheses with a rich dataset of Italian innovative start-ups.

Keywords: Early-stage hiring; Innovation orientation; Innovative start-ups; Resource- (and Competence-) based view; Signaling (search for similar items in EconPapers)
JEL-codes: L26 M13 O32 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11187-023-00818-7

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