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Competing in the new economy: the effect of intellectual capital on corporate entrepreneurship in high‐technology new ventures
Author(s) -
Hayton James C.
Publication year - 2005
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2005.00379.x
Subject(s) - entrepreneurship , intellectual capital , human capital , intellectual property , reputation , business , competitive advantage , industrial organization , new ventures , economics , marketing , market economy , finance , social science , sociology , computer science , operating system
Intellectual capital (IC) offers a potential source of sustainable competitive advantage and is believed to be the font from which technological development and economic growth may spring. This study proposes a three‐dimensional framework for describing and measuring a firm's IC that includes human capital, intellectual property, and reputational capital. Drawing upon the resource‐based view of the firm, it is argued that in high‐technology new ventures (HTNVs) IC assets offer a unique source of advantage that facilitates entrepreneurship by reducing the risk and increasing the returns from investments in innovation and venturing. This paper reports the results of an empirical study of 237 HTNVs in the US that issued an initial public offering between 1994 and 1998. It is found that these firms' top management team human capital diversity and organizational reputation are of greatest significance for their entrepreneurial performance. Interestingly, these factors far outweigh the insignificant effect observed for intellectual property on subsequent innovation and venturing activities. The implications for theory and practice are discussed.