Financial management competence and growth of new technology-based firms

Jan Brinckmann, Hans Georg Gemünden, Soeren Salomo

Research output: Indexed journal article Articlepeer-review

Abstract

This article draws on the resource-based view to analyze the role founding teams' financial management competencies play for firm growth. Prior research stressed the importance of acquiring external financial resources. In this study, we broaden the understanding of financial management in new firms. We explore the relevance of strategic financial planning competence, external financing competence, competence in financing from cash flow, and controlling competence of entrepreneurial teams for the growth of new technology-based firms. A total of 212 founding teams provided self-assessments of their financial management competencies at start-up. We apply the partial least squares approach to determine the effects of the different financial management competencies on firm growth.
Original languageEnglish
Pages (from-to)217-243
JournalEntrepreneurship: Theory and Practice
Volume35
Publication statusPublished - 1 Mar 2011

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