How biotechnology start-up firms transform human capital resources into dynamic capabilities

The dynamic capabilities of firms and its underlying human capital resources are thought to underlie the competitive advantage of firms. In this study we examine empirically the process whereby human capital is amassed, and combined with other resources to manifest operational, then dynamic capabilities. Our research question asks, how do new ventures amass and configure the human capital of their firms? We utilize an inductive longitudinal, multi-case study approach to reveal the micro-processes through which biotechnology start-up firms amassed and configured their human capital resources for viability and competitive advantage. Our findings reveal two important overlapping micro-processes: gathering and hunting, and potentiating. These two micro-processes converge to form organizational capabilities and outcomes for the firm. We discuss the implications of the findings in extending the literature on human capital emergence and dynamic capabilities.