Title: Don't run before you can walk! The importance of fostering threshold capabilities in securing market-level survival

Authors: James M. Crick

Addresses: School of Business, University of Leicester, Brookfield Campus, 266 London Road, Leicester, Leicestershire, LE2 1RQ, UK

Abstract: The positive association between dynamic capabilities and sustainable competitive advantages has been well-studied throughout the extant literature. In contrast, relatively little is known about threshold capabilities, namely, the intangible assets that entrepreneurs utilise to survive within their markets. As such, the contribution of this conceptual paper is to integrate threshold capabilities into the dynamic capabilities sub-set of resource-based theory. This is achieved via reviewing the existing literature pertaining to threshold capabilities and their performance outcomes, as well as the types of entrepreneurs that are most likely to be interested in fostering such intangible assets. Additionally, illustrations of threshold capabilities are described to differentiate them from dynamic capabilities and other intangible assets. These conceptualisations are important, since they shed light on vital organisational capabilities that have been largely overlooked by other scholars. This article ends with some directions for future research.

Keywords: threshold capabilities; dynamic capabilities; resource-based theory; dynamic managerial capabilities; market-level survival; sustainable competitive advantages; lifestyle-oriented entrepreneurs; growth-oriented entrepreneurs; small businesses; entrepreneurial objectives.

DOI: 10.1504/IJESB.2022.124464

International Journal of Entrepreneurship and Small Business, 2022 Vol.46 No.3, pp.416 - 433

Received: 15 Nov 2018
Accepted: 15 Sep 2019
Published online: 27 Jul 2022 *

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