Small High-technology Companies Research Articles

Determinants of growth of small high-tech companies in transition economies

High-technology business acts as an important driver of any economy. Microeconomic factors influencing employment in small high-technology companies are identified and assessed in the paper. The case of high-technology manufacturing and knowledge-intensive services in Russian transition economy is discussed. The empirical part of this research is based on data provided by Business Environment and Enterprise Performance Survey (BEEPS). A two-step assessment procedure was applied in order to determine and estimate the factors of growth. Significant factors were selected with the help of best subsets regression and then these factors were further analyzed using OLS. Such an approach enables an increased explanatory power of the obtained results. It was found that younger companies have greater influence on job creation than older ones. Significant differences in growth factors between companies in high-technology manufacturing and knowledge-intensive services were demonstrated. This difference constitutes a new result in the research of growth of high-technology companies in transition economies. The suggested model could help to construct the companies’ rating, which would be useful for investors in the emerging markets with high volatility of assets’ prices and lack of information for investment analysis.

Responsible innovators: open networks on the way to sustainability transitions

Abstract This paper elucidates ways in which small high-technology companies through using open knowledge networks may contribute to sustainability transitions. The analysis focuses on young university spin-off companies as an important channel for bringing responsible innovations from university to market while it connects the micro-level with the meso-level of networks supporting socio-technical system changes. A conceptual reflection on responsible innovation, openness in knowledge networks and socio-technical systems’ transitions, is followed by an empirical research. Based on a hundred companies and four case studies, the results indicate that responsible innovation is one of the drivers of openness in knowledge networks. However, partner diversity in openness tends to have a negative effect on growth of the companies. Our preliminary evidence indicates that focus (product–market) and selectivity in the choice of partners connected to professional (venture) capital, market access, credibility and complementary assets are highly relevant when it comes to influencing change in socio-technical systems. A discussion of the implications of this study and suggestions for future research close the paper.

The effect of chromium coating in RP technology for airfoil manufacturing

Most wind tunnel models are fabricated of all metal components using computerized numerical control (CNC) milling machines. Fabrication of metal wind tunnel models is very expensive and time consuming. The models can require months to manufacture and are often made by small high technology companies that specialize in wind tunnel model manufacture. Using rapid prototype manufacturing techniques and materials in this way significantly reduces time and cost of production of wind tunnel models. This study was done by fused deposition modelling and their ability to make components for wind tunnel models in a timely and cost effective manner. This paper discusses the application of wind tunnel model configuration constructed using FDM and FDM with chromium coating for subsonic wind tunnel testing. A study was undertaken comparing a rapid prototyping model constructed of FDM technologies using polycarbonate to that of a standard machined steel model. Results from this study show relatively good agreement among the three models and rapid prototyping method with chromium coating does have an effect on the aerodynamic characteristics which produced satisfactory results.

The impact of uncertainty on product introduction in dispersed environments

This research addresses product introduction dispersed across locations and companies. A semiconductor design licensor that introduces products in a range of environments was studied: in some environments the subcomponent architectures of competitor products differ widely, while in others all competitor products have the same subcomponents. The approach adopted involved multiple detailed interviews covering the full range of participants in the product development processes from designers through project managers to directors. Reporting from these multiple informants was captured using a novel mapping approach that allowed participants to develop interactively their understanding of informal as well as formal processes at work within the company. It was found that the degree of architectural uncertainty is a major determinant of feasible organization structures for product introduction. It was also found that ‘microproduct’ architecture offers considerable freedom in the opportunities for dispersion of project activities. The degree of formality and structure in design technologies and their link to highly characterized production processes was identified as a key factor of this industry sector. The implications of these findings include the probability that (a) where design technologies can simulate product performance, dispersed teams with high priority can resolve architectural uncertainties; (b) a cross-functional team may not resolve architectural uncertainty as well as autonomous teams focused on subproducts (microproducts); (c) early entrants may benefit by allowing business units to adopt diverse approaches to product introduction, since architectural uncertainty may vary between products at different stages of their lives. This suggests that small high-technology companies may find it easier to expand into new geographies and product lines than was previously believed. Further work is necessary to make more confident statements about the linkage between product environment and team organization, but the ideas of architectural uncertainty and microproduct team organization may be of immediate interest to companies of all sizes when seeking to select appropriate product introduction processes and organization.

International Strategy Formation in Small Canadian High-Technology Companies– A Case Study Approach

For some companies, especially in the high technology sector, internationalisation is no longer a matter of choice, but of necessity. This paper explores the strategy development patterns of internationalising small high-technology companies in an environment where windows of opportunity close quickly. Findings from in-depth interviews suggest that emergent strategies within or outside established networks are likely to trigger small high-technology companies' initial internationalisation. Further overseas expansion is constrained by resource availability. This study demonstrates that internationalisation is an iterative process that happens in a holistic way much more than a systematic one. Rather than trying to fit small and medium enterprises' (SMEs') internationalisation patterns into a stage model, managers and policy-makers should recognise the importance of networks. Training and programs could, therefore, help identify strategic networks of importance for the companies and assist them in both contributing and taking advantage of these.

Foreign Direct Investment Opportunities and Strategies in Japan

Japan is a wealthy nation and possesses the second largest economy in the world along with the largest pool of personal savings and foreign exchange reserves. Yet its stock markets have been in nothing less than a depression for over a decade. This article looks at several opportunities for foreign direct investments in Japan. Among the sources of opportunities are: divestitures of noncore operating units; investments in financially troubled enterprises; the establishment of partnerships to refinance and reengineer the operations and global reach of existing Japanese companies; and investments in small and medium-sized high-technology companies.

£150m tax break for research in UK budget

london In Tuesday's budget Gordon Brown announced £150 million worth of tax credits for small high-technology companies.

Career orientations of software developers in a sample of high tech companies

AbstractThe career orientations of software developers in 11 high technology companies of different sizes were studied. It was found that the proportion wanting a managerial career was higher than might be expected (34%) and increased with organisational size. Approximately 25% wanted advancement in a technical career, and this remained the same in organisations of different sizes. The same proportion wanted to start up their own company, but this decreased substantially with organisational size. The group wanting a project‐based career was the smallest, at 15%, and this varied slightly with organisational size. The four groups showed differences in their ideal job characteristics, organisational versus technical orientation and expected tenure. The extent to which they actually expected to satisfy their career preference varied dramatically, with the great majority of managerially‐oriented expecting to actually be managers, but the majority wanting to start their own company not expecting to actually do so.The small high technology company has become an important, almost mythical, component of popular and academic folklore. As Beyer says, the “prevailing wisdom from both lay people and researchers who have been around them says that these firms are somehow different” (Beyer, 1985, p. 483). Within such organisations, the software developer or computer hack has similarly developed a particular aura. As one commentator puts it, “the stereotyped image of the community of programmers is … of a collection of single‐minded nerds possessing no interest in life outside the digital realm” (Sandberg‐Diment, 1986, p.C3). In spite of the interest in both the nature of such companies and such employees, there has been very little empirical data collected (Turbin and Rosse, 1988, p.17) to substantiate the folklore. In particular there has been an almost complete absence of rigorous academic enquiry into what the individuals choosing to work in this type of company are really like, or what their work needs actually are. The present paper is aimed at filling some of this gap, by addressing the issue of what type of career path software developers in high tech companies want.

New product management practices of small high technology firms

Various methods exist for managing the planning, cost estimating, scheduling and statusing of new product development projects. David Boag and Brenda Rinholm investigate whether the use of formal management procedures and structured frameworks are the most effective methods for achieving control over new product development activities. This article describes the new product development management practices of 33 small and medium-sized high technology companies. The authors employ a judgmental procedure to group the firms into three stages of development for their management of new products. Findings indicate that success at new product development is greater for more formalized companies than for companies which are less formalized or which use informal methods.

Customising of a two-dimensional CAD system to service the needs of a small high technology company

This paper discusses the implementation of a low cost CAD system, allied to a relational database product, at a small high technology manufacturing company. The problems involved and the methods used to create a fully automatic system for the creation of production drawing are detailed, along with the methods of operation of the resulting system.

Business Strategies in Small High-Technology Companies

This publication contains reprint articles for which IEEE does not hold copyright. Full text is not available on IEEE Xplore for these articles.

Business strategies in small high-technology companies

Cambridge high-technology companies, like other small businesses, do not for the most part have explicit overall business strategies, but a number of their key policies are quite clear-cut. For example: they all aim to sell highly specialized products in profitable market niches; the newer electronics firms minimize their commitment to manufacturing by buying-in components for assembly and testing; nearly all the firms want to make the minimum use of outside capital so as to maintain their independence. Although many are expanding rapidly, there are a number of cultural and environmental factors working against their growth into major international competitors.

EXPORT PERFORMANCE AND FOREIGN MARKET INFORMATION: RELATIONSHIPS FOR SMALL HIGH-TECHNOLOGY FIRMS

ABSTRACT This article summarizes a research project which focused on the role of external information sources on the export performance of small high-technology companies. As a first step the authors developed a conceptual model of the general problem based upon existing knowledge. This framework identified the interaction between sources of information, basic firm strategies, and perceived international marketing problems and barriers on overall export performance. A questionnaire was then utilized in interviewing 85 high-tech firms in Ontario who, on average, have sales of $7.8 million and 100 employees. The investigation sought client responses relative to a number of specific questions: total of fifteen possible external sources of information were tested relative to extent of use. Respondents then identified ten major problem areas with these particular sources which are rank ordered. The existing export performance of the sample firms was measured on both the level of growth and degree of intensity. In the area of general firm strategies, the study classified the existing practices along two fundamental lines—world versus nearest-neighbour market orientation and a marketer versus seller approach to the market.

Setting up small high-technology companies

A personal case history of the problems of establishing a small high-technology company to manufacture and develop specialised microwave components that had originated in the author's academic research is presented in the paper. Part-time involvement grew rapidly into full-time commitment and, within three years, to the attraction of venture capital and a major expansion into the USA. The special nature of each stage is outlined, with special mention of the recurrent problem of control of cash flow. Recent Government initiatives have made it easier for small companies, but these potential creators of national wealth deserve more encouragement, and three measures are suggested. The paper is a summary of a lecture given at the Institution of Electrical Engineers, Savoy Place, London, on the 22nd March 1983, and the chair was taken by Mr. H. Tomlinson. It was a joint meeting of the Management & Design and the Electronics Division. The lecture was based on one given by the author a year previously at the North Midlands Centre.

On stimulating productivity in the U.S.: The need to encourage innovation is broadly supported, and a program is sought

Technological innovation is the application of the industrial arts and sciences, along with the human intellect, to change the way society creates its goods and services, or the very nature of those goods and services. Despite the fact that technological innovation can secure large benefits for society, and that small businesses secure those benefits out of all proportion to their size, the rate of creation of small businesses in the United States has fallen dramatically over recent years. From 1964 to 1974, the number of new public issues for small high-technology companies dropped from $349 million to $6 million. Even more tragic is the fact that in the first half of 1975, there was not a single new issue for a small high-technology company.