Developing capabilities in new ventures: a knowledge management approach

On the basis of a knowledge management perspective, this paper expands the literature on new ventures’ capabilities by considering how these firms fill knowledge gaps and develop the technological, marketing, management, and ICT capabilities they need to compete. In particular, this paper investigates the role of networks in these dynamics. Although new technology‐based firms have great potential to introduce innovative products into the market, they might suffer from more critical knowledge gaps and capability weaknesses than established firms. The results of a quantitative investigation of an original data set of more than 400 Italian new ventures specializing in high‐tech industries show that these firms acquire knowledge to support their capability growth mainly through the management of intense relations with multiple external sources of knowledge. In addition, capability development is supported by the variety of founders’ industry experience and the presence of young graduates among the founding team.