Abstract
Considerable research has demonstrated that small- and medium-sized enterprises (SMEs) who obtain institutionalized third-party endorsements experience higher performance. In this study, we develop an important boundary condition around this process. Drawing on institutional logics, we introduce the novel concept of founding logics. We then develop and test a theory in which founding logics play a role in both an SME’s decision to seek a third-party endorsement for the firm’s technology and then the likelihood that the SME will generate revenues based on the technology receiving the endorsement. Notably, our theory and results suggest that a founding logic that may compel an SME to seek technology validation can also impede the SME’s ultimate commercialization ability.
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