Entrepreneurial capability plays a crucial role in the entrepreneurial activities of new ventures. From the preparation of creation, the beginning to the growth stage of new ventures, they all need entrepreneurial capability to support the entrepreneurial activities. The transformation of entrepreneurial capability from the individual level to the organizational level is of great significance. Therefore, it is necessary to transform the individual entrepreneurial capability into the organizational level and make it into impersonal entrepreneurial capability, which is owned by the enterprise, for example, transferring the individual entrepreneurial capability to organizational systems, rules, regulations and company cultures. Only with such a transfer, can new ventures become less dependent on the individual entrepreneurial capability. This will help to promote the whole level of entrepreneurial capability and entrepreneurial success for new ventures. This paper selects three information technology companies as research objects and collects date mainly from secondary date, semi-structured interviews and archives. Through the multi-case study method, this paper reveals the transform mechanism of entrepreneurial capability among different levels, and further reveals the evolution process of entrepreneurial activities in new ventures. First, the research finds that the concept of entrepreneurial capability at the individual level and the team/organizational level are consistent, and the connotation includes three dimensions, which are opportunity-related capability, resource-related capability and integration capability. Second, the single-case analysis shows that entrepreneurial capability on different levels plays different roles in the transformation process. Third, the cross-case analysis shows that entrepreneurial capability can be transformed dynamically among individuals, teams and organizations mainly through knowledge transformation. Specifically, new ventures can transfer at different levels mainly through interpersonal communication, coding and institutionalization, which reveals the internal mechanism how entrepreneurial capability can provide sustained motivation for new ventures. The contributions of this study include the following aspects. First, previous studies define entrepreneurial capability from different perspectives and levels, resulting in controversial conclusions; while this study explores the essential connotation of multilevel entrepreneurial capability, and unifies the different point of views understanding entrepreneurial capability. Second, previous studies only focus on the concept of entrepreneurial capability and its influence factors statically; while this study not only reveals the specific entrepreneurial capability required by new ventures at each stage, but also reveals where this capability come from and how it can be transformed among the individual level, team level and organizational level. Third, previous studies only explore the relationship between entrepreneurial capability and corporate performance on superficial, but neglect the internal influencing mechanism between them; while this study explores how new ventures maintain sustained competitive advantages. New ventures, especially high-tech enterprises facing rapidly changing markets, tend to generate short-term competitive advantages. Therefore, this study explores how entrepreneurial capability can be transformed among different levels to help new ventures gain sustained competition advantages. Although this study has drawn some meaningful conclusions, there are still many problems to be further explored in the future. First, we need to make a comparative study of how to transform entrepreneurial capability among persons with different positions. Second, this study only analyzes the transformation of entrepreneurial capability with a general application of the knowledge transfer mechanism, but does not deeply compare the differences between tacit knowledge and explicit knowledge in the process of transfer. This needs further exploration in the future. Third, in order to reveal the transformation process of entrepreneurial capability, we need to interview two more new ventures to make a comparative analysis.
The Transform Mechanism of New Ventures’ Entrepreneurial Capability among Different Levels: A Case Study Based on the High-Tech Industry
Foreign Economics & Management Vol. 40, Issue 10, pp. 17 - 30 (2018) DOI:10.16538/j.cnki.fem.2018.10.002
 Chen Guoquan, Sun Rui, Zhao Huiqun. Modeling individual, team, organizational cross-level learning mechanisms and a case study.[J].Journal of Industrial Engineering and Engineering Management,2013,(2):23-31.
 Ge Baoshan, Gao Yang, Jiang Dake, et al. Cai Sining. A study about opportunity-resource integration exploitation behaviour[J]Science Research Management,2015,(5):99-108
 Mei Deqiang,Long Yong.A study on the relationship between entrepreneurial competence and innovation types under uncertain environment[J].Studies in Science of Science,2010,(9):1413-1421.
 Su Jingqin,Cui Miao. Interview question design for exploratory and confirmative case study: Theory and cases[J].Chinese Journal of Management.2011,(10):1428-1437.
 Tang Jing, Jiang Yanfu. Theoretical construct and empirical study on the concept of entrepreneurial competence[J].Science of Science and Management of S.&T.,2008,(8):52-57.
 Wei Jiang,Wang Tongan. An empirical research on the factors influencing knowledge transfer among individual ,group and organization[J].Studies in Science of Science,2006,(1);91-97.
 Ye Zhengxin, Ye Zhengmao. A Study on Transforming Individual Human Capital into Organizational Human Capital[J].Fudan Journal(Social Sciences Edition),2013,(2):88-94.
 Yin Miaomiao, Cai li. A review of empirical literature of entrepreneurial capabilities and future prospects[J].Foreign Economics &Management,2012,(12):1-11,19.
 Zhang Xia,Wang Linxue, Zeng Xingwen.The Construction of the Transformation Mechanism of Entrepreneurial Capability Based on the Venture Enterprise Growth[J].Science &Technology Progress and Policy,2011,28(11):77-80.
 Zhang Yinghong. Corporate Entrepreneur Capacity and Durable Competition Advantage [J].Research on Economics and Management,2005,(3):24-28.
 Zhang Yuli,Wang Xiaowen. Empirical study on prior experience, learning style and entrepreneurial competence[J].Journal of Management Science,2011,(3):1-12.
 Arthurs J D, Busenitz L W. Dynamic capabilities and venture performance: The effects of venture capitalists[J]. Journal of Business Venturing, 2006, 21(2): 195-215.
 Burke A E, Fitzroy F R, Nolan M A. Self-employment wealth and job creation: The roles of gender, non-pecuniary motivation and entrepreneurial ability[J]. Small Business Economics, 2002, 19(3): 255-270.
 Cardon M S, Post C, Forster W R. Team entrepreneurial passion: Its emergence and influence in new venture teams[J]. Academy of Management Review, 2017, 42(2): 283-305.
 Chandler G N, Hanks S H. Founder competence, the environment, and venture performance[J]. Entrepreneurship: Theory and Practice, 1994, 18(3): 77-90.
 Chandler G N, Jansen E. The founder's self-assessed competence and venture performance[J]. Journal of Business Venturing, 1992, 7(3): 223-236.
 Clarysse B, Tartari V, Salter A. The impact of entrepreneurial capacity, experience and organizational support on academic entrepreneurship[J]. Research Policy, 2011, 40(8): 1084-1093.
 Crossan M M, Lane H W, White R E. An organizational learning framework: From intuition to institution[J]. Academy of Management Review, 1999, 24(3): 522-537.
 Davis C H, Sun E. Business development capabilities in information technology SMEs in a regional economy: An exploratory study[J]. Journal of Technology Transfer, 2006, 31(1): 145-161.
 Eisenhardt K M. Building theories from case study research[J]. Academy of Management Review, 1989, 14(4): 532-550.
 Eisenhardt K M, Graebner M E. Theory building from cases: Opportunities and challenges[J]. Academy of Management Journal, 2007, 50(1): 25-32.
 Federici D, Ferrante F, Vistocco D. On the sources of entrepreneurial talent in Italy: Tacit vs. codified knowledge[R]. SSRN, 2007.
 Haldin‐Herrgard T. Difficulties in diffusion of tacit knowledge in organizations[J]. Journal of Intellectual Capital, 2000, 1(4): 357-365.
 Hynes G E. Improving employees’ interpersonal communication competencies: A qualitative study[J]. Business and Professional Communication Quarterly, 2012, 75(4): 466-475.
 Jasimuddin S M. Learn how to grab others' knowledge to do your job properly[J]. Business Strategy Series, 2007, 8(6): 435-439.
 Jiao H, Ogilvie D, Cui Y. An empirical study of mechanisms to enhance entrepreneurs' capabilities through entrepreneurial learning in an emerging market[J]. Journal of Chinese Entrepreneurship, 2010, 2(2): 196-217.
 Karra N, Phillips N, Tracey P. Building the born global firm: Developing entrepreneurial capabilities for international new venture success[J]. Long Range Planning, 2008, 41(4): 440-458.
 Lai J, Lui S S, Tsang E W K. Intrafirm knowledge transfer and employee innovative behavior: The role of total and balanced knowledge flows[J]. The Journal of Product Innovation Management, 2016, 33(1): 90-103.
 Man T W Y, Lau T. Entrepreneurial competencies of SME owner/managers in the Hong Kong services sector: A qualitative analysis[J]. Journal of Enterprising Culture, 2000, 8(3): 235-254.
 Man T W Y, Lau T, Chan K F. The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies[J]. Journal of Business Venturing, 2002, 17(2): 123-142.
 Man T W Y, Lau T, Chan K F. Home-grown and abroad-bred entrepreneurs in China: A study of the influences of external context on entrepreneurial competencies[J]. Journal of Enterprising Culture, 2008, 16(2): 113-132.
 Nicolaou N, Shane S, Cherkas L, et al. Is the tendency to engage in entrepreneurship genetic?[J]. Management Science, 2008, 54(1): 167-179.
 Rasmussen E, Mosey S, Wright M. The evolution of entrepreneurial competencies: A longitudinal study of university spin-off venture emergence[J]. Journal of Management Studies, 2011, 48(6): 1314-1345.
 Rosti L, Chelli F. Gender discrimination, entrepreneurial talent and self-employment[J]. Small Business Economics, 2005, 24(2): 131-142.
 Sánchez J C. Entrepreneurship as a legitimate field of knowledge[J]. Psicothema, 2011, 23(3): 427-432.
 Shane S, Venkataraman S. The promise of entrepreneurship as a field of research[J]. Academy of Management Review, 2000, 25(1): 217-226.
 Thompson J L. The facets of the entrepreneur: Identifying entrepreneurial potential[J]. Management Decision, 2004, 42(2): 243-258.
 Tocher N, Oswald S L, Shook C L, et al. Entrepreneur political skill and new venture performance: Extending the social competence perspective[J]. Entrepreneurship & Regional Development, 2012, 24(5-6): 283-305.
 Truran W R. Pathways for knowledge: How companies learn through people[J]. Engineering Management Journal, 1998, 10(4): 15-20.
 Withers M C, Drnevich P L, Marino L. Doing more with less: The disordinal implications of firm age for leveraging capabilities for innovation activity[J]. Journal of Small Business Management, 2011, 49(4): 515-536.
 Zahra S A, Abdelgawad S G, Tsang E W K. Emerging multinationals venturing into developed economies: Implications for learning, unlearning, and entrepreneurial capability[J]. Journal of Management Inquiry, 2011, 20(3): 323-330.
 Zhang M, Tansuhaj P, McCullough J. International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China[J]. Journal of International Entrepreneurship, 2009, 7(4): 292-322.
Cite this article
Yin Miaomiao, Sun He, Ma Yanli. The Transform Mechanism of New Ventures’ Entrepreneurial Capability among Different Levels: A Case Study Based on the High-Tech Industry[J]. Foreign Economics & Management, 2018, 40(10): 17-30.