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How high-tech entrepreneurial ventures cope with the global crisis: changes in product innovation and internationalization strategies

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  • Massimo G. Colombo
  • Evila Piva
  • Anita Quas
  • Cristina Rossi-Lamastra

Abstract

The global crisis that began in the second half of 2008 abruptly changed the business context, inducing firms to react by modifying their strategies. This paper examines changes in innovation and internationalization strategies that high-tech entrepreneurial ventures implemented to react to the crisis. Relying on insights from the behavioural theory of the firm and threat-rigidity theory, we explore the antecedents of firms’ investments in development of new products and in expansion in international markets and the consequences of these changes on firms’ growth performance. Econometric results from a sample of 140 Italian high-tech entrepreneurial ventures support the view that the stock of resources accumulated by larger firms, firms’ innovation and internationalization investments in the pre-crisis period and firms’ cash flow determine the extent of the two changes. The effects of these changes on firms’ short-term growth performance are positive only for investments in development of new products.

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  • Massimo G. Colombo & Evila Piva & Anita Quas & Cristina Rossi-Lamastra, 2016. "How high-tech entrepreneurial ventures cope with the global crisis: changes in product innovation and internationalization strategies," Industry and Innovation, Taylor & Francis Journals, vol. 23(7), pages 647-671, October.
    • Handle: RePEc:taf:indinn:v:23:y:2016:i:7:p:647-671
    DOI: 10.1080/13662716.2016.1196438
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    1. Abhijit Das & Rashmi Banga & Dinesh Kumar, 2011. "Global Economic Crisis : Impact and Restructuring of the Services Sector in India," Trade Working Papers 23225, East Asian Bureau of Economic Research.
    2. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, April.
    3. Correa, Paulo & Iootty, Mariana, 2010. "Will the crisis affect the economic recovery in eastern European countries ? evidence from firm level data," Policy Research Working Paper Series 5278, The World Bank.
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    3. Hayoung Park & Taewon Kang & Jeong-Dong Lee, 2019. "R&D Dynamics And Firm Growth: The Importance Of R&D Persistency In The Economic Crisis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-24, June.
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    6. Tiberiu Foris & Alina Simona Tecău & Camelia-Cristina Dragomir & Diana Foris, 2022. "The Start-Up Manager in Times of Crisis: Challenges and Solutions for Increasing the Resilience of Companies and Sustainable Reconstruction," Sustainability, MDPI, vol. 14(15), pages 1-20, July.
    7. Van Lancker, Evy & Knockaert, Mirjam & Collewaert, Veroniek & Breugst, Nicola, 2023. "Preparing for scaling: A study on founder role evolution," Journal of Business Venturing, Elsevier, vol. 38(4).
    8. Lartey, Theophilus & Danso, Albert & Owusu-Agyei, Samuel, 2020. "CEOs' market sentiment and corporate innovation: The role of financial uncertainty, competition and capital intensity," International Review of Financial Analysis, Elsevier, vol. 72(C).
    9. Teng Ma & Ya Liu & Rongyan Jia, 2023. "Multiple Driving Paths of High-Tech SME Resilience from a “Resource–Capability–Environment” Perspective: An fsQCA Approach," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    10. Krammer, Sorin, 2021. "Navigating The New Normal: Which Firms Have Adapted Better To The Covid-19 Disruption?," MPRA Paper 109485, University Library of Munich, Germany.
    11. Mehmet Yildiz & Nicola Pless & Semih Ceyhan & Rob Hallak, 2023. "Responsible Leadership and Innovation during COVID-19: Evidence from the Australian Tourism and Hospitality Sector," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    12. Krammer, Sorin M.S., 2022. "Navigating the New Normal: Which firms have adapted better to the COVID-19 disruption?," Technovation, Elsevier, vol. 110(C).
    13. Sigala, Marianna, 2020. "Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research," Journal of Business Research, Elsevier, vol. 117(C), pages 312-321.
    14. Anna Wziątek-Kubiak & Marek Pęczkowski, 2021. "Strengthening the Innovation Resilience of Polish Manufacturing Firms in Unstable Environments," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 716-739, June.

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