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An empirical analysis of organizational strategies by entrepreneurial high‐technology firms
Author(s) -
Shan Weijian
Publication year - 1990
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250110205
Subject(s) - commercialization , industrial organization , business , high tech , marketing , position (finance) , entrepreneurial orientation , product (mathematics) , competitive advantage , new product development , entrepreneurship , geometry , mathematics , finance , political science , law
Many start‐up, high‐technology firms commercialize an emerging technology through cooperative arrangements. This paper empirically investigates the determinants of entrepreneurial high‐technology firms to form cooperative relationships. The statistical results on data drawn from the commercialization of the new biotechnology show that the propensity to cooperate is positively correlated with the distance of firms' competitive position in relation to their rivals. The follower is more likely to seek cooperative relationships than the leader in commercializing new products. However, the competitive pressure impacts firms in different ways, depending on their internal capabilities to commercialize a new product. We found that firm size is negatively correlated with the use of cooperative arrangements. The study also found that the organizational mode of cooperative arrangements is predominantly selected by the high‐tech. start‐up firm in commercializing their new products in foreign markets.