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Survival of high tech firms: The effects of diversity of product–market portfolios, patents, and trademarks

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  • Srinivasan, Raji
  • Lilien, Gary L.
  • Rangaswamy, Arvind

Abstract

High tech firms can mitigate potential risks by diversifying their product–market portfolios. A key research question is how such diversification influences firm survival. A firm exits the market in two ways, specifically, dissolution and acquisition. Here, we model how the diversity of a new firm's product–market portfolio influences the times to both types of exits. Specifically, we allow for interaction effects of the competitive intensity of a firm's environment and the diversity of a firm's product–market portfolio with its patents and trademarks. Using a competing risk hazard model, we estimate the effects of various covariates on the time to exit for 1435 US high tech firms.

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  • Srinivasan, Raji & Lilien, Gary L. & Rangaswamy, Arvind, 2008. "Survival of high tech firms: The effects of diversity of product–market portfolios, patents, and trademarks," International Journal of Research in Marketing, Elsevier, vol. 25(2), pages 119-128.
    • Handle: RePEc:eee:ijrema:v:25:y:2008:i:2:p:119-128
    DOI: 10.1016/j.ijresmar.2007.12.005
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    3. Ratbek Dzhumashev & Vinod Mishra & Russell Smyth, 2011. "Exporting, R&D Investment and Firm Survival," Monash Economics Working Papers 39-11, Monash University, Department of Economics.
    4. Stephen Petrie & Mitchell Adams & Ben Mitra‐Kahn & Matthew Johnson & Russell Thomson & Paul Jensen & Alfons Palangkaraya & Elizabeth Webster, 2020. "TM‐Link: An Internationally Linked Trademark Database," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(2), pages 254-269, June.
    5. Yougen Cao & Shengce Ren & Mei Du, 2022. "Strategic trademark management: a systematic literature review and prospects for future research," Journal of Brand Management, Palgrave Macmillan, vol. 29(5), pages 435-453, September.
    6. Tsafarakis, Stelios & Marinakis, Yannis & Matsatsinis, Nikolaos, 2011. "Particle swarm optimization for optimal product line design," International Journal of Research in Marketing, Elsevier, vol. 28(1), pages 13-22.
    7. Saurabh Mishra & Demetrios Vakratsas & Alexander V. Krasnikov, 2018. "Protecting positioning innovations: the emergence of non-traditional trademark registrations," Marketing Letters, Springer, vol. 29(3), pages 307-318, September.
    8. Michael Braun & David A. Schweidel, 2011. "Modeling Customer Lifetimes with Multiple Causes of Churn," Marketing Science, INFORMS, vol. 30(5), pages 881-902, September.
    9. Kwon, Seokbeom & Marco, Alan C., 2021. "Can antitrust law enforcement spur innovation? Antitrust regulation of patent consolidation and its impact on follow-on innovations," Research Policy, Elsevier, vol. 50(9).
    10. Mohammad Keyhani & Yuval Deutsch & Anoop Madhok & Moren Lévesque, 2022. "Exploration-exploitation and acquisition likelihood in new ventures," Small Business Economics, Springer, vol. 58(3), pages 1475-1496, March.
    11. Fisch, Christian & Meoli, Michele & Vismara, Silvio & Block, Jörn H., 2022. "The effect of trademark breadth on IPO valuation and post-IPO performance: an empirical investigation of 1510 European IPOs," Journal of Business Venturing, Elsevier, vol. 37(5).
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    15. Huang, Shuangfa & Battisti, Martina & Pickernell, David, 2023. "The roles of innovation strategy and founding team diversity in new venture growth," Journal of Business Research, Elsevier, vol. 158(C).

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