Abstract
This study investigates the impact of technological capability and the combination of technological capability, networking capability and financial capital on growth strategies adopted by new ventures in China. Technological capability needs leveraging through the process of combining with other capabilities. The results show that the interaction between technological capability and networking capability increases the possibility that a new venture chooses an internationalisation strategy. Technology capability provides a base to allow networks to have a positive impact on internationalisation strategies. The findings from the study provide a better understanding of technology capability and its impact on internationalisation strategies. This study also generates some important implications for high-tech new ventures in emerging economies.
Highlights
Technology capability plays a critical role in determining the success of new ventures, both in domestic and international marketplaces (Zahra 1996; Yiu et al, 2007)
While recent entrepreneurship studies have paid significant attention to the importance of technology capability on the speed at which international new ventures are established (Pla-Barber & Escribá-Esteve, 2006; Acedo & Jones, 2007) as well as to their performance (Gleason & Wiggenhorn, 2007; Zahra & Hayton, 2007), considerably less attention has been given to the impact of technological capability on different growth strategies that new ventures adopt, except for earlier work done by McDougall and her colleagues (1989; 1994)
This study further provides new insights into how technological capability is leveraged through the combination of financial capital and networking capability to affect the growth path of new ventures
Summary
Technology capability plays a critical role in determining the success of new ventures, both in domestic and international marketplaces (Zahra 1996; Yiu et al, 2007). While recent entrepreneurship studies have paid significant attention to the importance of technology capability on the speed at which international new ventures are established (Pla-Barber & Escribá-Esteve, 2006; Acedo & Jones, 2007) as well as to their performance (Gleason & Wiggenhorn, 2007; Zahra & Hayton, 2007), considerably less attention has been given to the impact of technological capability on different growth strategies that new ventures adopt, except for earlier work done by McDougall and her colleagues (1989; 1994) This is partly because the literature on new venture growth often focuses on why some firms grow faster than others, instead of understanding “where that growth is occurring (i.e. domestically or internationally)” Few studies investigate how technological capability affects different growth orientations between domestic new ventures and international new ventures, and attempt to differentiate the impact of technological capability on different growth choices
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