IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v23y2019i01ns1363919619500014.html
   My bibliography  Save this article

Effects Of Internal And External Resource Dimensions On The Business Performance Of New Technology-Based Firms

Author

Listed:
  • HANNA RYDEHELL

    (Department of Technology Management and Economics, Chalmers University of Technology, SE412 96 Göteborg, Sweden)

  • ANDERS ISAKSSON

    (Department of Technology Management and Economics, Chalmers University of Technology, SE412 96 Göteborg, Sweden)

  • HANS LÖFSTEN

    (Department of Technology Management and Economics, Chalmers University of Technology, SE412 96 Göteborg, Sweden)

Abstract

This study examines the effects of new technology-based firms (NTBFs) internal and external resources on their early business performance. Based on a large unique dataset of 401 newly started NTBFs, we find that founders’ business experience and their firms’ proximity to other firms positively affect early business performance. Growth orientation is found to be negatively related to business performance, which might suggest a certain level of over-optimism among entrepreneurs with aspiration to grow fast.

Suggested Citation

  • Hanna Rydehell & Anders Isaksson & Hans Löfsten, 2019. "Effects Of Internal And External Resource Dimensions On The Business Performance Of New Technology-Based Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-29, January.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:01:n:s1363919619500014
    DOI: 10.1142/S1363919619500014
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919619500014
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919619500014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Johan Wiklund & Dean Shepherd, 2003. "Aspiring for, and Achieving Growth: The Moderating Role of Resources and Opportunities," Journal of Management Studies, Wiley Blackwell, vol. 40(8), pages 1919-1941, December.
    2. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02276706, HAL.
    3. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    4. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    5. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    6. Colombo, Massimo G. & D’Adda, Diego & Pirelli, Lorenzo H., 2016. "The participation of new technology-based firms in EU-funded R&D partnerships: The role of venture capital," Research Policy, Elsevier, vol. 45(2), pages 361-375.
    7. Chandler, Gaylen N. & Hanks, Steven H., 1994. "Market attractiveness, resource-based capabilities, venture strategies, and venture performance," Journal of Business Venturing, Elsevier, vol. 9(4), pages 331-349, July.
    8. Cooper, Arnold C. & Artz, Kendall W., 1995. "Determinants of satisfaction for entrepreneurs," Journal of Business Venturing, Elsevier, vol. 10(6), pages 439-457, November.
    9. Colombo, Massimo G. & Grilli, Luca, 2010. "On growth drivers of high-tech start-ups: Exploring the role of founders' human capital and venture capital," Journal of Business Venturing, Elsevier, vol. 25(6), pages 610-626, November.
    10. Almus, Matthias & Nerlinger, Eric A, 1999. "Growth of New Technology-Based Firms: Which Factors Matter?," Small Business Economics, Springer, vol. 13(2), pages 141-154, September.
    11. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, vol. 34(6), pages 795-816, August.
    12. Michael Hitt & M. Tina Dacin & Edward Levitas & Jean-Luc Arregle & Anca Borza, 2000. "Partner Selection in Emerging and Developed Market Contexts : Resource-Based and Organizational Learning Perspectives," Post-Print hal-02312691, HAL.
    13. Autio, Erkko & Yli-Renko, Helena, 1998. "New, technology-based firms in small open economies--An analysis based on the Finnish experience," Research Policy, Elsevier, vol. 26(9), pages 973-987, April.
    14. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    15. Jan Brinckmann & Soeren Salomo & Hans Georg Gemuenden, 2011. "Financial Management Competence of Founding Teams and Growth of New Technology–Based Firms," Entrepreneurship Theory and Practice, , vol. 35(2), pages 217-243, March.
    16. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    17. Pittino, Daniel & Visintin, Francesca & Lauto, Giancarlo, 2017. "A configurational analysis of the antecedents of entrepreneurial orientation," European Management Journal, Elsevier, vol. 35(2), pages 224-237.
    18. Ben Letaifa, Soumaya & Rabeau, Yves, 2013. "Too close to collaborate? How geographic proximity could impede entrepreneurship and innovation," Journal of Business Research, Elsevier, vol. 66(10), pages 2071-2078.
    19. Garud, Raghu & Gehman, Joel & Giuliani, Antonio Paco, 2014. "Contextualizing entrepreneurial innovation: A narrative perspective," Research Policy, Elsevier, vol. 43(7), pages 1177-1188.
    20. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    21. Storey, D. J. & Tether, B. S., 1998. "New technology-based firms in the European union: an introduction," Research Policy, Elsevier, vol. 26(9), pages 933-946, April.
    22. Niels Bosma & Mirjam van Praag & Roy Thurik & Gerrit de Wit, 2004. "The Value of Human and Social Capital Investments for the Business Performance of Startups," Small Business Economics, Springer, vol. 23(3), pages 227-236, October.
    23. Yli-Renko, H. & Autio, E. & Tontti, V., 2002. "Social capital, knowledge, and the international growth of technology-based new firms," International Business Review, Elsevier, vol. 11(3), pages 279-304, June.
    24. Brinckmann, Jan & Grichnik, Dietmar & Kapsa, Diana, 2010. "Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning-performance relationship in small firms," Journal of Business Venturing, Elsevier, vol. 25(1), pages 24-40, January.
    25. Anders Isaksson & Vladimir Vanyushyn & Peter Hultén, 2013. "The impact of managers' attitudes on SMEs' growth in northern Sweden," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 18(3), pages 298-312.
    26. Cahen, Fernanda Ribeiro & Lahiri, Somnath & Borini, Felipe Mendes, 2016. "Managerial perceptions of barriers to internationalization: An examination of Brazil's new technology-based firms," Journal of Business Research, Elsevier, vol. 69(6), pages 1973-1979.
    27. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    28. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    29. Robert A. Lowe & Arvids A. Ziedonis, 2006. "Overoptimism and the Performance of Entrepreneurial Firms," Management Science, INFORMS, vol. 52(2), pages 173-186, February.
    30. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    31. Frédéric Delmar & Scott Shane, 2006. "Does Experience Matter? The Effect of Founding Team Experience on the Survival and Sales of Newly Founded Ventures," Post-Print hal-02311638, HAL.
    32. Jacques-Laurent Ravix, 2014. "Localization, innovation and entrepreneurship: an appraisal of the analytical impact of Marshall's notion of industrial atmosphere," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 63-81.
    33. van Weele, Marijn & van Rijnsoever, Frank J. & Nauta, Frans, 2017. "You can't always get what you want: How entrepreneur's perceived resource needs affect the incubator's assertiveness," Technovation, Elsevier, vol. 59(C), pages 18-33.
    34. Ana M. Moreno & José C. Casillas, 2008. "Entrepreneurial Orientation and Growth of SMEs: A Causal Model," Entrepreneurship Theory and Practice, , vol. 32(3), pages 507-528, May.
    35. Chowdhury, Sanjib, 2005. "Demographic diversity for building an effective entrepreneurial team: is it important?," Journal of Business Venturing, Elsevier, vol. 20(6), pages 727-746, November.
    36. Elicia Maine & Daniel Shapiro & Aidan Vining, 2010. "The role of clustering in the growth of new technology-based firms," Small Business Economics, Springer, vol. 34(2), pages 127-146, February.
    37. Kollmer, Holger & Dowling, Michael, 2004. "Licensing as a commercialisation strategy for new technology-based firms," Research Policy, Elsevier, vol. 33(8), pages 1141-1151, October.
    38. Cassar, Gavin, 2014. "Industry and startup experience on entrepreneur forecast performance in new firms," Journal of Business Venturing, Elsevier, vol. 29(1), pages 137-151.
    39. Busenitz, Lowell W. & Barney, Jay B., 1997. "Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making," Journal of Business Venturing, Elsevier, vol. 12(1), pages 9-30, January.
    40. Linlin Jin & Kristen Madison & Nils D. Kraiczy & Franz W. Kellermanns & T. Russell Crook & Jing Xi, 2017. "Entrepreneurial Team Composition Characteristics and New Venture Performance: A Meta–Analysis," Entrepreneurship Theory and Practice, , vol. 41(5), pages 743-771, September.
    41. Bollinger, Lynn & Hope, Katherine & Utterback, James M., 1983. "A review of literature and hypotheses on new technology-based firms," Research Policy, Elsevier, vol. 12(1), pages 1-14, February.
    42. Storey, D. J. & Tether, B. S., 1998. "Public policy measures to support new technology-based firms in the European Union," Research Policy, Elsevier, vol. 26(9), pages 1037-1057, April.
    43. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lindelöf, Peter & Hellberg, Roland, 2023. "Incubation - An evolutionary process," Technovation, Elsevier, vol. 124(C).
    2. Martin Hemmert & Adam R. Cross & Ying Cheng & Jae-Jin Kim & Masahiro Kotosaka & Franz Waldenberger & Leven J. Zheng, 2023. "Environmental uncertainty and the entrepreneurial orientation–performance relationship among East Asian new technology-based firms: an institutional perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1683-1711, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hanna Rydehell & Anders Isaksson & Hans Löfsten, 2019. "Business networks and localization effects for new Swedish technology-based firms’ innovation performance," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1547-1576, October.
    2. Dina Cunha & Sandra T. Silva & Aurora A.C. Teixeira, 2013. "Are Academic Spin-Offs necessarily New Technology-Based firms?," FEP Working Papers 482, Universidade do Porto, Faculdade de Economia do Porto.
    3. Hanna Rydehell, 2019. "Stakeholder Roles In Business Model Development In New Technology-Based Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-38, May.
    4. Erik Lundmark & Anna Krzeminska & Dean A. Shepherd, 2019. "Images of Entrepreneurship: Exploring Root Metaphors and Expanding Upon Them," Entrepreneurship Theory and Practice, , vol. 43(1), pages 138-170, January.
    5. Hasan Boudlaie, 2020. "Studying the content characteristics of New Technology-Based Firms," Technium Social Sciences Journal, Technium Science, vol. 3(1), pages 94-111, February.
    6. González-Cruz, Tomás & Clemente, Jose Antonio & Camisón-Haba, Sergio, 2018. "Which Factors Favour Becoming a Technology-Based & Highly Innovative Firm? The Role of Knowledge, Technological and Managerial Capabilities, and Entrepreneurs´ Education Background," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2018), Split, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Split, Croatia, 6-8 September 2018, pages 494-508, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    7. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    8. Siepel, Josh & Cowling, Marc & Coad, Alex, 2017. "Non-founder human capital and the long-run growth and survival of high-tech ventures," Technovation, Elsevier, vol. 59(C), pages 34-43.
    9. Nuscheler, Daniela & Engelen, Andreas & Zahra, Shaker A., 2019. "The role of top management teams in transforming technology-based new ventures' product introductions into growth," Journal of Business Venturing, Elsevier, vol. 34(1), pages 122-140.
    10. Giuseppe Criaco & Tommaso Minola & Pablo Migliorini & Christian Serarols-Tarrés, 2014. "“To have and have not”: founders’ human capital and university start-up survival," The Journal of Technology Transfer, Springer, vol. 39(4), pages 567-593, August.
    11. Masatoshi Kato, 2017. "Founders’ human capital and external knowledge sourcing: An absorptive capacity perspective for innovative start-ups," Discussion Paper Series 162, School of Economics, Kwansei Gakuin University, revised Jun 2017.
    12. Salisu Isyaku, 2014. "Mediating Effect of Uncertainty Avoidance on the Relationship between Entrepreneurial Talent and SMEs Performance in Nigeria: A Conceptual Analysis," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(6), pages 368-383, June.
    13. Felipe Rojas & Elena Huergo, 2016. "Characteristics of entrepreneurs and public support for NTBFs," Small Business Economics, Springer, vol. 47(2), pages 363-382, August.
    14. Kollmann, Tobias & Stöckmann, Christoph & Niemand, Thomas & Hensellek, Simon & de Cruppe, Katharina, 2021. "A configurational approach to entrepreneurial orientation and cooperation explaining product/service innovation in digital vs. non-digital startups," Journal of Business Research, Elsevier, vol. 125(C), pages 508-519.
    15. ALARCON-OSUNA, Moises Alejandro & DIAZ-PEREZ, Claudia del Carmen, 2014. "The Technology Based Sectors In Mexico: An Analysis For The Firm Size And The Production Scale," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 23(4), pages 40-60.
    16. Guillermo Andrés ZAPATA HUAMANÍ & Sara FERNÁNDEZ LÓPEZ & Isabel NEIRA GÓMEZ & Lucía REY ARES, 2017. "THE ROLE OF THE ENTREPRENEUR IN NEW TECHNOLOGY-BASED FIRMS (NTBFs): AN ANALYSIS ACCORDING TO CONTEXT DEVELOPMENT," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 17(2), pages 25-42.
    17. Jared Allen & Regan Stevenson & Tang Wang, 2021. "Creative and resourceful: How human, social, and psychological resources affect creative workers’ ability to rebound after failure," Small Business Economics, Springer, vol. 57(2), pages 705-719, August.
    18. Sullivan, Diane M. & Marvel, Matthew R. & Wolfe, Marcus T., 2021. "With a little help from my friends? How learning activities and network ties impact performance for high tech startups in incubators," Technovation, Elsevier, vol. 101(C).
    19. Denis A. Grégoire & Martin X. Noël & Richard Déry & Jean–Pierre Béchard, 2006. "Is There Conceptual Convergence in Entrepreneurship Research? A Co–Citation Analysis of Frontiers of Entrepreneurship Research, 1981–2004," Entrepreneurship Theory and Practice, , vol. 30(3), pages 333-373, May.
    20. Rosendahl Huber, Laura & Sloof, Randolph & Van Praag, Mirjam & Parker, Simon C., 2020. "Diverse cognitive skills and team performance: A field experiment based on an entrepreneurship education program," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 569-588.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:23:y:2019:i:01:n:s1363919619500014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.