The article draws on the resource-b

The article draws on the resource-based view of the firm to analyze the role of resource
accumulation in the entrepreneurial process. In accordance with the resource-based
perspective, entrepreneurship can be viewed as a process of identification, acquisition and
accumulation of resources to take advantage of perceived opportunities (Bergmann-
Lichtenstein and Brush, 2001; Stevenson et al., 1994). Thus, ventures can be viewed as
tangible and intangible bbundles of resourcesQ. According to this theory, resources can be
combined or developed over time to generate unique capabilities (Bergmann-Lichtenstein
and Brush, 2001). These valuable resources are difficult to imitate and rare, and are thus
key to firm performance and sustainability (Barney, 1991). In service industries, the
quality and experience of the service personnel is frequently viewed as an inimitable
resource that contributes to the competitive advantage of the venture (Gro¨ nroos, 2000;
Schneider and Bowen, 1995). Focusing on small ventures in the tourism industry, often
regarded the world’s largest industry (WTTC, 1996), it is argued that ability to utilize and
control valuable and industry-specific resources, while designing the offered tourist
service and experience, may secure the future of the venture in the long run. Although the
number of small tourism ventures has been accelerating rapidly, no attempts have been
made to explore the unique resources used during the entrepreneurial process and to
examine their impact on performance (Olsen and Roper, 1998). This is long overdue,
given the scale and importance of small tourism ventures in most countries (Getz and
Carlsen, 2000).
The decision to invest or to be involved in a specific type of venture within an industry
determines the nature of resources required to achieve sustainability (Barney, 1997). Thus,
the premise of this paper is that the decision to invest in tourism is associated with the
accumulation and utilization of particular resources. Moreover, this industry presents
special environmental and managerial challenges for entrepreneurs, such as seasonality,
which have a direct impact on the profitability and long-term sustainability of the venture
(Getz and Carlsen, 2000). Additionally, the small tourism ventures in many countries such
as Israel are highly susceptible to geopolitical conflicts that frequently impact on their
performance (Pizam and Mansfeld, 1996). Such conditions reinforce the need for
accumulation of valuable resources for gaining sustainability.
Given the recognized need for data-based and integrative process studies of the steps
leading to venture creation and sustainable growth (Bhave, 1994), the purpose of the
current study is to conduct an empirical examination of the contribution of various
resource accumulation in the entrepreneurial process to venture performance. After
presenting the theoretical background and describing the proposed research model of
resource accumulation in the entrepreneurial process, the general research hypothesis is
presented. Then, each phase of resource accumulation and its contribution to performance
is described. Finally, the research findings are discussed, including their theoretical and
practical implications.