Capital and new product quality in high-tech startups - an examination in two environmental contexts

Abstract

ABSTRACTBased on the resource-based view (RBV), we investigated the effects on new product quality exerted by various types of capital, including human capital, innovation capital, and process capital, as well as their complementary interactions, and whether high or low technological turbulence in the environment moderates these effects. We collected data from 126 high-tech startups, and the results indicated that the effect of deploying human and process capital on new product quality is greater during periods of low technological turbulence, whereas that of deploying innovation capital remains the same regardless of turbulence. In addition, the results showed that high-tech startups that exert substantial effort in integrating finite resources create competitive advantages in highly technologically turbulent environments, but not in environments of low technological turbulence. Therefore, in circumstances in which resources are limited in a high-tech startup, managers should consider the influence of environmental contexts. Managers should not neglect the properties of a firm and its competitive position in the market during resource allocation.