Bottleneck Resources, Market Relatedness, and the Dynamics of Organizational Growth

Entering a new product market requires assembling bundle of resources. Because missing single resource can foil the entire entry effort, we argue that bottleneck resources—those most difficult to obtain or sell externally—anchor direction firm growth. We characterize resources as bottlenecks entry, because they are (on average) more challenging and than technological resources, articulate why importance varies with strength external markets for technology. Using cross-industry data linking firms’ portfolios patents, find dynamics whereby drive strategic decision enter, firms fill gaps using both internal research development acquisitions (joint ventures alliances). Our study underscores growth specifically highlights constrains directs entry.