New perspectives on strategic technology management in small high-tech companies

Abstract

Understanding strategy in small high-technology companies presents a paradox. In an environment of uncertain technologies and dynamic markets taking the time and resources to develop a formal strategy seems futile, yet a strategic perspective is vital in small companies with little margin for error. Strategy in this context seems both impossible and essential. This study focuses on how small high-tech companies strategically manage their technology — arguably their most important asset. Most relevant high-tech theoretical prescriptions are based on a large company perspective; advice for strategic technology management in small companies is sparse and overly focussed on 'technology planning'. Rather than simply equating strategy with planning, multiple perspectives can be used to explain strategic technology management in small high-tech firms. A model of strategy is presented which views practice in small high tech firms from different viewpoints: strategy as rational planning, as incremental learning and as imagined vision, all within a social context. This holistic view provides a coherent description of actual high-tech strategy practice, via an analytic model that helps practitioners understand the complex nature of their strategic management, and in turn learn and improve.