Human Capital, Reverse Engineering and New Venture Growth: The Moderating Role of Competitive Strategy

In this study, we propose human capital as an important enabler of new venture growth (NVG) and investigate how and when it enhances NVG. We examined this by considering a dynamic capability – reverse engineering– as a mediator and competitive strategy as an important contingency variable. Using survey data collected from 229 new manufacturing ventures in an emerging economy (Ghana), the results indicate that reverse engineering mediates the effect of human capital on NVG. The contingency analyses also revealed that the positive impact of reverse engineering on NVG is stronger at high levels of low-cost strategy. However, the relationship between reverse engineering and NVG is weaker when the differentiation strategy is high. The implications of the findings are discussed.