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 finacial management competencies at start-up. We apply the partial least squares approach to determine the effects of th different finacial management competencies on firm growth.

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Brinckmann, Jan; Salomo , Soeren; Gemnden , Hans Georg

Financial management competence of founding teams and growth of new technology-based firms

03/2011
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 finacial management competencies at start-up. We apply the partial least squares approach to determine the effects of th different finacial management competencies on firm growth.
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Financial management competence of founding teams and growth of new technology-based firms
Brinckmann, Jan; Salomo , Soeren; Gemnden , Hans Georg
Entrepreneurship: Theory and Practice
Vol. 35, n 2, 03/2011, p. 217 - 243

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