Start-Up Absorptive Capacity : Does the Owner's Human and Social Capital Matter?

This study investigates how business owner human and social capital affect start-up absorptive capacity under different environmental conditions. From our analysis of a sample of 199 Flemish start-ups, we observe that the owner's start-up experience and bridging social capital are positively and significantly related to the new venture's ability to acquire, assimilate, and exploit external information. In addition, our findings reveal a positive, but decreasing effect of owner specific human capital as a function of environmental turbulence. Furthermore, we find that management experience significantly stimulates start-up absorptive capacity within highly dynamic environments, whereas it hinders it within stable environments. Finally, implications and opportunities for future research are provided