Factors influencing Japanese entrepreneurs in high-technology ventures

Abstract

In this study reporting on a survey of the founders of Japanese high-technology firms, various factors affecting the entrepreneurial event are examined. The sample was drawn from the Nikkei Press Group, which publishes, in Japanese, an annual directory of over 1,700 “high-technology” venture business firms. A close examination of this directory reveals that there are only between 100 and 200 firms that are both high technology and less than 10 years old. From this list, 100 firms were selected for a single mailing of a Japanese-language questionnaire. Forty-six completed questionnaires were returned. The survey consisted of eight questions, six of where were multipart questions. While the “push” of a displacing event seems to be relatively unimportant among Japanese high-technology entrepreneurs, there appears to be a strong relationship between social marginality and entrepreneurs with a perception that they “had no alternative” but to form a new venture. The “pull” of opportunity was mostly related to a specific deal or a niche ignored by former employers. The importance of friends in the decision to launch a venture appears to be quite strong, reflecting the strong group spirit of Japanese society. The dominant element in the motivation of high-technology entrepreneurs in Japan seems to be related to a drive for self-actualization. The following five variables generated the strongest affirmative reactions: • Create an opportunity for myself • Create an organization that reflects my values • Reached a critical point in my life • Create an opportunity to grow and develop my talent • Unable to exercise my full creativity in previous position This may reflect that basic human needs are well met by the Japanese economy and the centuries of Japanese social and ethnic continuity. It is not entirely clear from this study where Japanese high-technology entrepreneurs find “role models.” Only a few had fathers who were entrepreneurs, although 43% had fathers who were either entrepreneurs, farmers, or otherwise self-employed. Observing colleagues or others form companies played only a limited role. However, 83% of the founders acknowledged that their firm was a “spin off” from their previous employer. The founders of these “spin-off” ventures were predominantly employed in R&D and sales and marketing. Holding a position of authority was strongly associated with spin-off ventures in Japan. About as many high-technology entrepreneurs came from large companies (over 1,000 employees) as from small (250 employees or less) firms. While it is commonly perceived that the cultural environment of Japan restrains entrepreneurship, most of these entrepreneurs saw their environment as favorable, which may reflect the Japanese will to endure hardship or a universal optimism among entrepreneurs.