Publication Date

January 1997


In order to better understand the relevant resources in the resource based view of the firm, this study examines which resources executives in initial public offering (IPO) firms think are important to their success two years after the IPO. Results indicate that managers recognized five different resources as important, with the executives considering themselves (management) to be the most important resource. The effect of all five resources (culture, human resource management [HRM] practices, management, technology, and product/marketing) on both short and long-term firm performance was studied. Results show that management and technology are considered important by the investment community, with both affecting short-term IPO firm performance. However, analyses on long-term performance suggest that the key role management plays may be due to management’s ability to develop synergies with people who are key to the organization’s success — both employees and customers.


Suggested Citation
Welbourne, T. M. & Wright, P. M. (1997). Which resources matter in initial public offering firms? A longitudinal comparison of five resources’ contributions to firm performance (CAHRS Working Paper #97-02). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.