HOW COMMUNITY VENTURES MOBILISE RESOURCES: DEVELOPING RESOURCE DEPENDENCE AND EMBEDDEDNESS

April 23, 2013 Editor 0

Publishers note (FSG): Valuable learning for African social entrepreneurs at the community level.

Abstract

Purpose – This paper aims to build theory on the resource mobilisation process of nascent community ventures (CVs). CVs are a type of social enterprises set up with the aim of creating social wealth within the communities in which they reside. Guided by resource dependence theory, we analyse how CVs introduce new ideas and activities into conservative communities. In particular, we explore how emerging CVs mobilise resources from local communities and how the resource mobilisation process shapes these new ventures.

Design/methodology/approach – We conducted longitudinal case studies on the emergence of two music festivals in rural communities in Norway. Findings – In the early stages of the venture formation process, the nascent CVs had an asymmetric dependence relationship with local resource providers because they lacked legitimacy and resources. The CVs were seeking to introduce new activities, and they simultaneously implemented two strategies to access resources: they adapted to and altered their environment. Throughout the resource mobilisation process, the CVs developed a joint dependence relationship with local resource providers. In later stages of the process, the CVs implemented strategies to increase their embeddedness and engage greater portions of the local communities in the ventures.

Originality/value – Our longitudinal approach to the resource mobilisation process made it possible to reveal how entrepreneurs and local resource providers interact over time to create new CVs. Building on resource dependence theory we provide an explanation for how CVs are able to become embedded in their local communities while introducing new ideas that departs from existing practices.
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Categories: Entrepreneurship

Tags: community ventures, CVs, embeddedness, resource dependence theory, resource mobilisation process