Entrepreneurial Ecosystems and New Venture Success in Pakistan: The Roles of Alertness and Bricolage

Abstract

Purpose:

This study is based on the bricolage theory and analyzes the environmental munificence and available resources to the success of a new venture through the mediation of bricolage and moderating effect of entrepreneurial alertness. The research is placed within the context of Pakistan, an institutionally unstable and resource-constrained market, where entrepreneurial success is frequently based on resource mobilization, as opposed to abundance.

Design/Methodology/Approach

The research utilized quantitative research design based on a survey data collected from 383 entrepreneurs. The direct, mediating, and moderating relationships between environmental munificence and available resources and bricolage, entrepreneurial alertness, and new venture success were tested using partial Least Squares Structural Equation Modeling (PLS-SEM).

Findings:

The findings show that the munificence of the environment and access to resources have a significant impact on the bricolage behavior. In turn, bricolage highly affects new venture success and somewhat mediates the environmental conditions and the success of new venture. Moreover, entrepreneurial alertness plays a significant moderating role in the relationship between bricolage and venture success, implying that opportunity recognition capability determines the viability of bricolage.

Theoretical and practical Implications:

This research builds upon the bricolage theory by confirming its mechanisms by empirical evidence in an emerging economy setting and incorporating the concept of entrepreneurial alertness as a boundary condition that affects bricolage behavior. The results indicate that entrepreneurial success in a resource-constrained environment is not only dependent on the external conditions but also the ability of the entrepreneur to creatively combine and discover opportunities.

Originality/Value:

This study enhances theoretical understanding of entrepreneurial action in the context of scarcity by framing and placing both bricolage as a mediating process and contingent ability of the context.