Knowledge-intensive Start-ups Research Articles

Start-up subsidies and the sources of venture capital

Research suggests that public subsidies for newly founded firms have a positive effect on follow-on financing, in particular on Venture Capital (VC), through providing certification and early-stage liquidity. This study shows that the various sources of VC value public start-up subsidies differently. It is the first to differentiate between distinct types of investors who pursue different investment strategies. We show for a large sample of knowledge-intensive start-ups that there is indeed a correlation between subsidies and all sources of VC (Government VC, Independent VC, Corporate VC, and Business Angels). However, when accounting for firm characteristics that drive both selection into public subsidies as well as into VC financing through econometric matching techniques, subsidies are no longer linked to all types, but mainly to Government VC and Business Angel financing. We discuss possible explanations for this finding and implications for entrepreneurial finance.

Entrepreneurial marketing decision-making in rapidly internationalising and de-internationalising start-up firms

This study utilises an effectuation lens to contribute to knowledge involving the entrepreneurial marketing practices of rapidly internationalising firms, following a temporary discontinuation of overseas sales. This is important since earlier studies typically focus on continuing overseas activities, not de-internationalisation. Semi-structured interviews took place with owner-managers of sixteen small, UK based, knowledge-intensive start-ups, before planned re-internationalisation occurred. All management teams were proactive, took risks, exploited innovation and engaged in opportunity-driven plus resource leveraging behaviour. Conversely, creating adequate ‘customer value’ did not occur. The investigation highlights that in particular contexts, certain facets of an effectuation approach outweigh others and the notion of ‘affordable losses’ is viewed in both financial and non-financial terms. The study offers unique insights into the need for decision-makers in rapidly internationalising firms to undertake validation of strategies to discover new customers; also, the potential usefulness to lose particular customers, even temporarily, to facilitate enduring entrepreneurial marketing activities.

The adoption of management control systems by start-ups: Internal factors and context as determinants

Previous research on the adoption of management control systems (MCSs) by start-ups has yielded inconsistent results showing that many start-ups do not adopt formal MCSs. This study focused on the role of internal factors and context as antecedents in the adoption of different types of MCSs. These antecedents were country-based cultural context, strategy, organizational structure, and performance. Partial least squares (PLS) and fuzzy-set qualitative comparative analysis (fsQCA) were used to test the proposed hypotheses for a sample of high-tech and knowledge-intensive start-ups from Portugal and Norway. The PLS results indicate that international strategy and past performance are important antecedents of the adoption of different types of MCSs. The fsQCA results show that different causal paths lead to high degrees of MCS adoption. These paths vary according to the type of MCS. This study complements previous research and provides support to practitioners' decisions and policymakers' influence on MCS adoption.

An Empirical Study on the Antecedents of Knowledge Intensive Entrepreneurship

This study sheds light on the importance of the exposure to entrepreneurial and non-entrepreneurial role models regarding the entrepreneurial intention of engineering students, as they are the potential founders of new knowledge intensive start-ups. With this purpose, a questionnaire surveying a sample of 851 engineering students from a technical university in Spain is developed. The results point out that parents who own a business foster entrepreneurial intention and related attitudes in their sons/daughters. To the contrary, civil servants are identified as a negative role model, hindering both attitudes and intentions towards entrepreneurship.

Recruitment Practices in Malaysian Knowledge Intensive Start-Ups

This paper investigates Strategic Human Resource Management (SHRM) practices adopted by knowledge intensive start-up companies in Malaysia. SHRM is considered a key to the success of these firms in line with the Resource-Based-View (RBV) of the firm. Particular focus was given to recruitment practices as recruitment is viewed as having the most significant short term impact for start-ups. This paper is based on the case study of three Malaysian knowledge intensive start-ups. The study finds that Malaysian start-ups do not perceive SHRM as critical for their success. Owner-managers of Malaysian start-ups prefer an informal & unstructured SHRM process. Key SHRM areas of recruitment and compensation are ad hoc. These findings are in line with other studies carried out globally. This paper discussed the pros and cons of the SHRM practices at Malaysian Knowledge intensive start-ups and recommends a framework for recruitment in small knowledge intensive start-ups is proposed.

High-technology cluster evolution: a network analysis of Canada's Technology Triangle

Clusters of high-technology firms are a significant influence on the competitiveness and innovativeness of regional economies. Knowledge transfer, interfirm networking and collective learning processes form the underlying dynamics that drive high-technology clusters to evolve over time. This research examines the evolution of the Waterloo Region Canada's Technology Triangle (CTT) by analysing its TechMap™, a genealogical chart of the development of the cluster. The findings about the key characteristics of the evolution process of the CTT cluster have implications for theories of high-technology clusters, economic development policy and the managerial practices of firms in such clusters. They are also an important adjunct to understanding the internationalisation processes of the knowledge intensive start-ups that form the cluster.

Policies to stimulate regional innovation capabilities via university–industry collaboration: an analysis and an assessment

In this paper, we demonstrate how regional economic policies to stimulate entrepreneurship and innovation, can lead to successes. More specifically, through a detailed theoretical and empirical analysis, we discuss the critical ingredients that can lead to regional innovation and economic success. These critical ingredients consist of a balanced mix based on the presence of research institutes, a texture of endogenous knowledge–intensive start–ups coupled to larger R&D–intensive incumbents, all of them embedded in a professional environment that supports business advice and services. We illustrate the effects of this mix using empirical material from various innovative regions around the world.