Performance Of New Technology-based Firms Research Articles

The influence of founders’ human capital on the performance of new technology-based firms in China, South Korea and Japan: an exploratory study

ABSTRACT Western-based research suggests a modest influence of founders’ human capital on the business performance of new technology-based firms (NTBFs). Our exploratory, longitudinal study of 40 NTBFs in China, South Korea and Japan reveals that the human capital of their founders helps them to acquire executive talent, finance and customers, and thereby strongly enhances business performance. Furthermore, we find that East Asian NTBF founders leverage their human capital through networks with former colleagues and business partners in order to access key resources. These findings can be explained by cultural background factors such as social stratification and relational orientation.

The Emergence and Performance of New Technology-Based Firms in Nigeria

New Technology-Based Firms (NTBFs) are one of the key actors within the National System of Innovation. They are firms/businesses based on the exploitation of an invention and they play crucial roles in the processes of bringing new ideas or innovations to the market and by extension, contributing to economic growth. This paper provides empirical evidence on the emergence and performance of NTBFs in Nigeria. A survey design was used to collect data from NTBFs in the selected Technology Incubator Centres (TICs). Data were analysed using both descriptive statistics and the ordinary least square technique. The research results show that research and development (R&D) activities are vital for the growth and development of NTBFs, but this activity is still at a very minimal level. Product price, the number of employees, research and development, access to credit facilities, and the cost of raw materials are statistically significant in explaining the performance of NTBFs. The recommendations for ensuring the improved performance of NTBFs in Nigeria include the increased collaboration among NTBFs, universities, and research institutes, firms to spend at least 40 percent of their profit on research and development that relates to the improvement of their products, and the improvement in the level of the production process to enhance productivity and competitiveness.

Entrepreneurial teams and early performance of new ventures: An analysis of Taiwanese tech-firms

In this paper, we investigate the effects of the relation between the human capital of the entrepreneurial team, R&D-manufacturing linkage and the performance of new technology-based firms in accordance with a resource-based view. We try to comprehend how entrepreneurial teams and R&D-manufacturing linkage shape firm’s ability to have a positive outcomes in terms of company sales revenue and international connection. We take advantage of a new data relating to a sample composed of 152 taiwanese young firms that operate in technology-based industries. We find that firms with higher proportionally advanced professional education entrepreneurs in the team have a positive effect on firms' performance. Furthermore, it is R&D-manufacturing linkage that determines technology-based firm’s growth. Individuals with entrepreneurial experiences exerts key influences on firm's international connection. Firms can also benefit from their team members' background affiliation and achieve better performance. Lastly, we provide evidence that there are gains from the complementary capabilities of entrepreneurial teams and firms relating to (i) advanced professional education , (ii)entrepreneurial or CEO experiences and team members' background affiliation and (iii) R&D-manufacturing linkage. We conclude that the human capital of entrepreneurial team and R&D-manufacturing linkage of new technology-based firms have a critical impact on the firm’s development. These findings are consistent with and complements the growing body of research that emphasizes the importance of entrepreneurial teams in developing knowledge about the strategies and allocation of the enterprises resources.

An integrated fuzzy analytical network process for prioritisation of new technology-based firms in Iran

The performance evaluation and prioritisation of knowledge-based firms which are working in science and technology parks enable the decision makers (DMs) to specify the benchmarks (the best firms) and grant them or help other firms to improve their performance. In this paper, the performance of new technology-based firms (NTBFs) in Iran is evaluated through a multi-criteria decision-making method. To do so, at the first the most important criteria to assess the performance of the NTBFs are proposed according to the literature and experts' opinions. Then, due to complex relationship and correlation among these criteria, an integrated fuzzy analytic network process (ANP) is proposed to evaluate NTBFs under uncertainty of evaluation parameters. The results show that the applied approach is a suitable tool for prioritisation of NTBFs.

Unravelling the effects of Science Parks on the innovation performance of NTBFs

In spite of the extensive presence of Science Parks in developed countries, it is still unclear whether they have been successful in fostering the innovation performance of new technology-based firms (NTBFs). The aim of this paper is to help answer exactly this question. Using an unbalanced panel of 7691 observations associated with 1933 Spanish NTBFs (2007–2013), located both on-park and off-park, our empirical results show no evidence of a direct relationship between being located on a Science Park and the innovation performance of the NTBFs. However, our findings reveal that Science Parks play a positive selection role by attracting NTBFs with high technological capabilities (indirect effect). Moreover, our results also indicate that the decision to locate in a Science Park may enhance the innovation performance of NTBFs that collaborate and jointly export (moderating effect). This paper provides new explanations that help provide a better understanding of the effects of Science Parks on innovation performance and also outlines several practical implications.

The graduation performance of technology business incubators in China\u2019s three tier cities: the role of incubator funding, technical support, and entrepreneurial mentoring

This study examines the effects of technology business incubator (TBI)’s funding, technical support and entrepreneurial mentoring on the graduation performance of new technology-based firms in China’s three tier cities. Using a new dataset on all TBIs and incubated new technology-based firms from government surveys conducted over five consecutive years from 2009 to 2013 combined with archival and hand-collected data, we find the effects of incubator services on the early growth of new technology-based firms vary according to the local context. Technical support facilities and entrepreneurial mentoring from TBIs are found to have significantly and positively influenced the early development of the firms in the four most affluent tier 1 cities, whilst these effects become less pronounced for the tier 2 and tier 3 cities. These two services are also found to influence graduation performance in the government and university types of TBI respectively. Results support the notion that the effectiveness of an incubator’s services is shaped by the level of a city’s socio-economic development and that the city location of a TBI does impact the graduation performance of its incubatees.

Entrepreneurship and survival over the business cycle: how do new technology-based firms differ?

We investigate the survival performance of new technology-based firms (NTBFs) over the business cycle and compare them against other entrepreneurial firms. Our data comprise the entire population of entrepreneurial firms entering the Swedish economy from 1991 to 2002, which we follow until 2007. Discrete-time duration models are employed to investigate whether the business cycle impacts differently on the survival likelihood of NTBFs vis-à-vis other entrepreneurial firms. Our main findings are three. First, NTBFs generally experience a lower hazard rate compared to other entrepreneurial firms, which is interpreted as a sign of their high ‘quality.’ Second, all entrepreneurial firms are sensitive to and follow a pro-cyclical pattern of survival likelihood over the business cycle. Three, when comparing NTBFs with the broader group of other entrepreneurial firms, we find that NTBFs are more sensitive to business cycle fluctuations. The above results come with a qualification, though. The sensitivity during the business cycle mainly pertains to self-employed NTBFs. Also, NTBFs’ higher survivability is only linked to not being characterized as self-employed.

L'effetto moderatore delle caratteristiche dei partner sulle performance delle giovani imprese ad alta tecnologia

The paper analyzes the effects of international research alliances on the performance of NTBFs (new technology-based firms) by adopting a framework that incorporates both the resource-based view and the global strategic network theory. The paper focuses on the European Union-funded international research joint ventures established by a large sample of Italian NTBFs over the 1994-2003 period. We measure firm performance through total factor productivity and use the GMM system estimator to evaluate the impact of such alliances on the performance of NTBFs. Our results suggest that NTBFs are more efficient when allied with industrial partners located in different countries and when these countries are closer to world knowledge sources.

Do public subsidies affect the performance of new technology-based firms? The importance of evaluation schemes and agency goals

New technology-based firms (NTBFs) greatly contribute to the dynamic efficiency of the economic system. To perform this role, NTBFs need external financing. However, private financing of this type of firm is particularly subject to market inefficiencies. This seems to recommend policy intervention and NTBFs often find support through payment of direct public subsidies. When these are based on ex ante selective screening procedures of applicants and awarded competitively, direct public support may exert a positive effect on the performance of NTBFs beyond the amount of the subsidy. By picking promising projects, governments may signal the quality of a firm to third parties, thereby lowering information asymmetries. This paper contributes to the literature on the differing impact of various subsidies on firm performance by crossing the evaluation dimension (i.e. selective vs. automatic subsidies) with the dimension of the specific goal (R&D-enhancing vs. other measures) for which a subsidy may be implemented. Our results show that the evaluation mechanism and the goal of the subsidy are both important dimensions in the policy design domain and that selective R&D subsidies outperform other types of scheme in fostering NTBF performance.

Network embeddedness as a predictor of performance for New Technology-Based Firms

The logic of network embeddedness has been widely used in the technology entrepreneurship literature in recent years, yet its operationalisation and use are neither well understood nor agreed upon. This paper reviews the logic of network embeddedness as it has been invoked and operationalised to predict the performance of New Technology-Based Firms (NTBFs). We find network embeddedness to be a useful predictor for NTBF performance when operationalised at both the dyad and network levels and when interaction effects or contingency factors that account for environmental conditions and firm constraints are included.

Science Parks and the Performance of New Technology-Based Firms: A Review of Recent U.K. Evidence and an Agenda for Future Research

Science parks were established to stimulate the formation and development of new technology-based firms (NTBFs). Despite the potential importance of these institutions as a mechanism for generating technological spillovers and employment growth, there has been little systematic analysis of their impact on NTBFs. In this paper, we review some recent evidence comparing the performance of firms located on and off U.K. science parks. This preliminary evidence suggests that the "returns" to being located on a science park are negligible. We conjecture that these results may be due to imprecise estimates of these returns and may also be masking important differences in the returns to different types of science parks. In addition, we outline an agenda for additional research on the effects of these institutions on NTBF performance.

Performance of new technology-based firms in the Federal Republic of Germany at the stage of market entry*

This paper is based on studies accompanying the German federal programme ‘Support of New Technology-Based Firms’ and the 246 young companies founded with the help of this support up to june 1988. It examines in detail the performance of 45 companies at the stage of market entry of their new products or processes and the growth perspectives of these companies. It tries to explain this performance by indicators of technology and its applicability, need and supply of capital, qualification of the team of entrepreneurs, and by activities preparing the market entry. Success at the stage of market entry - understood as running sales of equal products or services to different customers - is strongly influenced by the necessity for customer specific work before and after sales and by the novelty of either technology or detail solution within a known technology. These factors also determine the possibilities for advanced services to customers (so preparing the market entry), the need for capital and the difficulti...