Small Technology-based Firms Research Articles

Strategic behavior and dynamic capabilities: studies in micro and small technology-based firms

Purpose: this work aims to contribute to the literature on strategic management in micro and small firms by identifying the main strategic behavior traits in micro and small technology-based firms.Methodology: the research method consisted of two phases: the first phase, quantitative, involved a survey of 104 micro and small technology-based firms, whose results were analyzed using the cluster analysis technique. The second qualitative phase involved five case studies, whose information was obtained through five semi-structured interviews and analyzed using the content analysis technique.Results: the results indicated which micro and small technology-based firms operate in sectors with high levels of dynamism and uncertainty, and their strategic behavior is based on the definition of competitive and innovation strategies, communication of strategic objectives to employees, allocation of organizational resources for innovation, market research and investments in R&D and development of dynamic capabilities for innovation, sensing changes in the external environment, seizing and reconfiguring resources, through strategic partnerships with external agents, especially customers, which can help these companies to adapt to market demands and obtain competitive advantages.Conclusions: the strategic behavior in micro and small technology-based firms is influenced by the definition of competitive and innovation strategies, communication of strategic objectives to employees, allocation of organizational resources for innovation, market research and R&D investments, and development of dynamic capabilities for innovation.

Research on the Model of Entrepreneurial University and Advanced University Governance: Policy Recommendations for Public Universities in Vietnam

Research on the Model of Entrepreneurial University and Advanced University Governance: Policy Recommendations for Public Universities in Vietnam

Fostering Open Collaborative Innovation for Micro and Small Technology-Based Firms in Brazil

Innovation happens as a combination or a result of various phenomena (i.e. entrepreneurship, business environment, interactions, etc.); it is almost impossible for a single discipline to explain it. Given that there are many facets to explore to cover all aspects of innovation, the present paper approaches this theme from the sociological perspective. Innovation is not a solitary, but an interactive phenomenon, which requires firms to cooperate to reach innovation sources, new processes and technologies. As a theoretical reference, this paper develops the argument of the importance of the firms’ interaction linkages and connections and their influence on the efficiency of the innovation system. So, in this context, the authors decided to adopt the survey method to examine whether or not interaction linkages have an impact on micro and small technology-based firms’ innovativeness in Brazil. The findings showed that interactions between firms and other innovation agents such as universities, research centres, financial institutions and other partners is essential for the development of open, collaborative innovation activities and have a direct impact on the level of innovativeness. Finally, this paper concludes that innovation is a result of the combination of various interaction linkages and not an isolated phenomenon restricted to the firm. As such, it may be appropriately fostered.

A Research on the Innovation and Development of Micro and Small Sci-tech Enterprises

For micro and small sci-tech enterprises with insufficient resource endowment and management experience, it is of great significance to carry out innovation to improve their level of management. Based on resource-based theory and dynamic capability theory, the paper explores the influences from the angle of ecological entity, populations and communities. The internal influences include resources and capability, and the external influences include the population and development environment. Based on the above, the model of growth mechanism is suitable for technology-based small firms to show the developing process of technology-based small firms. In view of the development status of technology-based small firms, this paper researches on the growth mechanism of technology-based small firms to find the micro and macro issues for improvement. All the specific comments and suggestions can offer reference for the leaders to make decision.

Entrepreneurial learning and innovation: qualitative evidence from agri-business technology-based small firms in New Zealand

The focus of this paper is on the nexus between entrepreneurial learning and the innovation process. In particular, the role that entrepreneurial learning plays in the innovation process. We have collected qualitative interview evidence with a sample of 30 technology-based small firms (TBSFs) engaged in the innovation process. TBSFs are highly diverse, defying consistent definitions, and operate across different sectors, but our sample is drawn solely from the agri-business sector within the unique environment of New Zealand. The literature on entrepreneurial learning is now well established and has identified the importance of both individual entrepreneurial learning and organisational learning for the determination of dynamic capability in TBSFs. Similarly, the literature on the innovation process in small firms and TBSFs is well established indicating the expected resource constraints and challenges from theory in the innovation process for TBSFs. However, no previous research has examined the role of entrepreneurial learning in the innovation process with TBSFs. We present qualitative interview evidence that demonstrates that entrepreneurial learning has a critical role in the innovation process enabling TBSFs to overcome resource constraints and challenges in a lean contextual environment such as New Zealand.

The influence of foreign investment on Malaysian Bumiputera technology firms: 1957-2016

PurposeThe purpose of this paper is to identify the historical influences and chronological development of foreign investors on Malaysian Bumiputera (indigenous) new technology-based small firms (NTBSFs).Design/methodology/approachWeick’s (1989) conceptual theory building approach is used to conduct a critical historical documentary analysis of the international, local, academic and government inward foreign investments literature from prior Malaysia’s independence (1957) through to 2016.FindingsIncreased foreign investment between 1957 and 2016 proved to be effective for Malaysia to transform its economy from a reliance on primary production to a focus on innovation and value-added industries such as the biotechnology and the information and communication and technology sectors.Research limitations/implicationsLocal and international literature addressing inward foreign investments towards host countries yielded four key research implications: employment effects, strategic alliances, technology transfer and knowledge transfer. Creation of firm-specific resources in addition to government assistance, particularly through grants and advisory services, significantly contribute to the sustainability of Bumiputera NTBSFs.Practical implicationsInward foreign investment through subsidiary multi-national companies (MNCs) leads to the formation of strategic alliances between MNCs and Bumiputera NTBSFs, generating employment opportunities, contributing to Malaysia’s development aims.Social implicationsCharting the chronological development and historical influence of foreign investment from a Malay-Bumiputera perspective provides an in-depth understanding of the evolution of what is now a multi-cultural Malaysian society.Originality/valueThis study provides a chronological development and discussion of the historical influences and implications of foreign investment towards the evolution and sustainability of Malaysian Bumiputera NTBSFs.

Teams in Small Technology-Based Firms: The Roles of Diversity and Conflict Management

This paper explores the effect of diversity and conflict management on the relationship between teamwork and organizational outcomes of small technology-based firms. To study the relationship between those variables, a quantitative research was conducted. The results of the survey involving 107 small Brazilian high-tech firms show that diversity and conflict management positively moderate the relationship between teamwork and organizational outcomes. So that, at higher levels of diversity and conflict management, best organizational outcomes. At the same time, it has been verified that conflict management is important regardless the level of diversity within teams. This research sheds new light on the factors that should be considered to become teamwork more effective in this specific context.

Slack resources, exploratory and exploitative innovation and the performance of small technology-based firms at incubators

This paper aims to contribute (1) to the understanding about how small technology-based firms in spite of being constrained by limited resources, can still perform exploratory and exploitative innovation and (2) to extend knowledge about the role of slack resources in the context of small technology-based firms in facilitating those innovation activities. Herein, we focus on two types of slack resources: internal slack, resources that are available within the firms and external slack, additional resources that are gathered through the facilitation of external sources such as business incubators. Using a sample of 141 small technology-based firms located at incubators, this study combined two streams of research on incubator studies and innovation to construct some hypotheses examining the role of slack resources and innovation activities in enhancing the performance of small technology-based firms operating in incubator setting. Our findings demonstrate that neither slack resources nor innovation activities alone explain firm performance. Instead, small technology-based firms fit their innovation activities to their slack resources. While the relationship between internal slack and performance is mediated by exploitative innovation, exploratory innovation plays a role as a mediator for the relationship between external slack and performance.

Small business activity and knowledge exchange in informal interfirm networks

This article explores knowledge search strategies of technology-based small firms (TBSFs) and the role that informal and proximate relationships play in the development of knowledge networks, through which knowledge exchange occurs. Drawing on interfirm relationship and social network theory, we contend that TBSFs participate in informal networks to exchange technology, market and managerial knowledge, to the extent that these knowledge configurations facilitate acquisition of external knowledge critical for their learning processes by TBSFs. Results indicate that a firm’s engagement in the exchange of various sources of knowledge is directly related to its economic activity and strategic knowledge priorities, which shape the structural dimensions of interfirm informal networks. While informal networks remain informal, certain TBSFs formalize their participation as they obtain and combine knowledge resources that are important for their activity. In examining how different interests and roles impact participation in informal interfirm networks, this study contributes to the literature on small firms and collaborative relationships.

Do the types of subsidies and firms’ heterogeneity affect the effectiveness of public R&D subsidies? Evidence from China’s Innofund programme

This paper aims to fill the gap in the extensive literature on the results of interaction between public and private R&D expenditures. Two types of public R&D subsidies, the appropriations and loan interest, are investigated in the effect of public subsidies by applying for a unique micro data set of Chinese manufacturing firms combined with the Innovation Fund for Small and Medium Technology-based Firms (Innofund). The results are consistent with the prediction that loan interest subsidies based on more competitive selective system are more effective for the public R&D subsidies than the appropriations. Firms’ heterogeneity, measured by state-owned enterprises (SOEs) and private-owned enterprises (POEs), is tested for the different impact of public subsidies on corporate R&D investment. The results show that the crowding-in effect is mainly driven by POEs, not by SOEs, which confirms the theoretical assumption by Aghion and Tirole that the agency problem play a dominant role in corporate R&D activities. An improved econometric method, combined propensity score matching with difference-in-differences estimation strategy, is applied for correcting the selection bias. Our results are robust to different matching techniques.

Vertical alliance portfolios and the business performance of small technology-based firms

ABSTRACTThis paper discusses how small technology-based firms (STBFs) effectively manage vertical alliances by choosing proper alliance structures to both manage challenges and pursue higher performance. We consider the main challenges of STBFs’ vertical alliances as opportunistic risk and coordination concern between partners, and derive four types of vertical alliance portfolios with different extents of risk and return based on the relational perspective. We then examine the impact of each portfolio on performance and the moderating effect of STBFs’ age and technological capability. The results show the portfolio focusing on bilateral alliances is not helpful for STBFs, while the others are useful. The portfolio focusing on unilateral alliances promises young firms better performance, while hybrid portfolios of unilateral and bilateral alliances are more helpful for older STBFs. In hybrid portfolios, bilateral alliance in the upstream is beneficial to specific technology-focused firms, while bilateral alliance in the downstream is recommended to STBFs whose technology covers a wider range.

Cooperation in New Product Development

This study analyses the drivers and impact of cooperation with external partners in the new product development (NPD) of small technology-based firms (STBFs). The authors used a mixed-method research design, carrying out 49 semi-structured, face-to-face interviews with STBFs in Germany. For data analysis, inter-coder agreement, content analysis, descriptive categorizations and contingency tables using Bayesian probabilities were applied. The authors found that STBFs predominantly cooperated with universities, non-university research institutions or laboratories, other enterprises and public agencies. Resource shortages in NPD were frequent among the STBFs in the study and, when faced with such shortages, STBFs had a higher propensity to cooperate with external partners. More specifically, qualification deficits were the most prominent cooperation driver. Furthermore, cooperation with external partners had a positive influence on the innovation success of STBFs. Several theoretical and practical implications are presented.

On the economic performance of nascent entrepreneurs

This paper assesses the R&D performance of nascent and established technology-based small firms that receive a Phase II R&D award from the U.S. Small Business Innovation Research (SBIR) program. Our empirical analysis is based on a two-stage selection probit model, which is used to estimate the probability of commercialization conditional on the Phase II project having not failed. Our model predicts, and our analysis confirms, that nascent firms are more likely to fail in their SBIR-supported R&D endeavors. Further, we find that nascent firms that do not fail have a higher probability of commercializing their developed technology.

Innovation Performance in Brazil – What is Missing? From the Perspective of Micro and Small Technology-Based Firms

The present paper approaches one of the most important themes in the business and economic areas since the second half of the 20th century: innovation; in particular for developing countries such as Brazil. For these countries, competitiveness is directly linked to the ability to foster and sustain a higher level of firms´ innovativeness. In Brazil, despite the overall economic and innovation conditions such as the presence of relevant innovation agents (i.e. universities, government, research centres and investors) and access to financing mechanisms as well as public policies which facilitated innovation initiatives have apparently been improved, innovation rates does not take off. So, considering this context, the present paper tried to examine what problems were hampering or inhibiting the improvement and increasing of the level of country´s innovativeness from the perspective of micro and small technology-based firms. The findings showed that there are still some problems such as lack of government support, funds and financing mechanisms as well as high costs of innovation and organizational resistances which play an important role pushing firms not to innovate.

Applying managerial competencies to overcome business constraints and create values: Evidence from small technology-based firms in Malaysia

Study analyzed how technology based frims apply resource-based theory of organizational competitiveness in Malaysia. Data has been collecteted through in-depth interviews, document review and observation. A sample of 13 companies has been adopted for study. The interplay of value creation and managerial competencies as the drivers of competitiveness to overcome business constraints with the perspective of time has been studied. Study investigate three different types of organizational compitencies required to adress four type of organizational constrains which limitize value creation process in the organization. There are few firams who demonstrate the capabalities to compete globally . We propose that Malaysian companies embrace the concept of learning culture to be the driver for the attainment of high value added value creation and managerial competencies whilst overcoming the business constraints faced.

Paradise lost? The case of technology-based small firms in New Zealand in the post-global financial crisis economic environment

In this paper, we draw on two studies that used face-to-face, qualitative interviews with technology-based small firms (TBSFs) and informal interviews with key informants. The interviews took place with two data-sets of TBSFs, the first with 20 firms in 2011 and the second with 34 agri-businesses in 2013. This study provides some temporal comparisons of the funding environment for TBSFs in New Zealand, but this is not a longitudinal study as the two data-sets were obtained from the recruitment of different firms. However, all the TBSFs were located in New Zealand, a small open economy with a limited domestic market, a population of 4.4 million, GDP per capita of US$32,260 (2010) and arguably an immature and limited financial infrastructure. This environment is complex for founding new businesses by technology-based entrepreneurs as developing and staying in New Zealand means accepting being a long distance from major overseas markets even though TBSFs have potential to be in global markets, in practice. Such TBSFs, therefore, face pressure to move overseas for markets and for finance and other resources; if successful they may make attractive takeover targets for overseas investors and MNCs. Despite these challenges, TBSFs have been promoted as key contributors to GDP and a way of filling the New Zealand productivity gap (compared with Australia and other developed nations). Although we find evidence of the development of embryonic regional and specialised business angel networks on the supply-side of finance, there is still a marked reluctance to undertake a search for external equity and evidence of discouraged borrowing and discouraged grant-based applications on the demand-side. New Zealand is sometimes described as ‘paradise’ (The use of this term often refers to a fondness for the high quality of life in New Zealand and its economic environment, not just the natural beauty of the country). due to its natural and outstanding beauty, but in our conclusions we suggest that the comparatively stable economic environment has not operated in favour of TBSFs.

What is the role of public feeder markets in developing technology-based small firms? An exploration of the motivations for listing on AIM since the GFC

In the aftermath of the 2007 global financial crisis, stock markets experienced a sharp decline in listings and a marked reduction in initial public offerings (IPOs). This paper explores the factors determining UK technology-based small firm (TBSF) listings on the UK alternative investment market (AIM) and whether this market has a role to play in their future development. A case-study approach is used to contrast the experiences of five recent AIM-listed TBSFs with five TBSFs approaching private equity investment exit, i.e. considering an IPO exit. The paper concludes that macro market conditions, rather than managerial resource-based or AIM market structural factors, were most influential in TBSF pecking-order preferences to undertake IPOs. From a managerial resource-based perspective, lifelong entrepreneurs were more likely than serial entrepreneurs to favour an IPO exit, as it supported their aims to continue to manage and grow UK-based companies. In addition, with a more buoyant and sustainable AIM market, TBSF investors are more likely to choose IPOs. To conclude, AIM played an important role in the development of listed UK TBSFs. A more buoyant AIM could ease the UK finance escalator's flow, facilitating more rapid UK TBSF growth.

Success and Failure Factors of Technology Commercialization: A Korean Case

We wanted to show the different group dynamics of factors for success and failure cases for technology commercialization in small technology-based firms. Existing studies are based on product level, project level, division level or firm level. We deal with technology level, and at small-technology-based firms. This is a longitudinal case study based on 8 cases from Korea. Our study on technology level is a first trial in success and failure studies unlike all existing studies. As a first step, we introduced new categories and factors such as technology attributes and CEO reflecting data, and especially a new concept of launch readiness level. Finally, we adopted correspondence analysis to show the group dynamics. The results are as follows; Technology factors are the most important factors. Second, resource-based factors are more critical in failure cases than success cases and technology factors are more critical to success.

Funding the growth of UK technology-based small firms since the financial crash: are there breakages in the finance escalator?

This paper presents recent research assessing the impact of the financial crisis on young and established technology-based small firms (TBSFs) and considers whether their ability to contribute to economic growth is being affected by ongoing problems in obtaining external finance. It reports on original findings from a survey of 100 TBSFs undertaken in late 2010 as well as 20 in-depth interviews with a range of finance providers. The surviving TBSFs exhibited considerable demand for external finance since 2007, particularly for working capital and early stage R&D, sought mainly from banks, but also with younger TBSFs seeking business angel finance and innovation grants and more mature TBSFs seeking venture capital finance. However, both debt and equity finance have become harder to access for TBSFs, particularly for early stage funding and for more R&D intensive firms, hampering their growth potential. Where external finance has been available, the terms and conditions set by providers were often unacceptable to business owners. The paper concludes that the smooth operation of the finance escalator has proved difficult to achieve under recent financial conditions and identifies a number of breakpoints relating to TBSFs which government policy needs to address.

INNOVATION TOOL ADOPTION AND ADAPTATION IN SMALL TECHNOLOGY-BASED FIRMS

In this paper, we present a qualitative, interview-based study of the processes small technology-based firms go through when they adopt tools and adapt them for use. By extracting 59 instances of tool internalisation across five firms, we derived a coding scheme combining existing and emergent forms of tool bricolage. The four types are reconstruction, reinterpretation, evolution, and customisation. We articulate examples of each type. Our findings reinforce the variability of any given tool once enacted in practice, contrary to implied expectations in some innovation tools literature that tool application is a straightforward mechanical process. In the small firms in our study, we found reinterpretation is the most prevalent form of tool adaptation. This type of tool use is prone to being superficial and failing to gain the benefits available from a more carefully customised or reconstructed tool. We also report on the different ways in which practitioners gain awareness of new tools.