Technological Resources and New Firm Growth: A Comparison of Start-up and Adolescent Ventures

Abstract

New ventures contribute to the competitiveness of the United States in global markets, creating jobs and wealth. Understandably, public policy makers and researchers alike have shown an interest in understanding the factors that spur these ventures’ growth, which is also an important research issue in the field of entrepreneurship. Researchers have highlighted the role of owners’ needs and aspirations and industry conditions as determinants of new ventures’ growth. This study proposes that new ventures’ resource endowments influence their growth in domestic and international markets. Using the resource-based view (RBV) of the firm, the study examines the effect of select technological resources on the domestic and international sales growth of 419 new ventures. Start-ups (5 years or younger) benefit from using a different set of technological resources in achieving growth than those of adolescent firms (6–8 years old). These differences persist in low vs. high technology industries, reflecting the maturation of these ventures.

Citation

Zahra, S.A. and Kirchhoff, B.A. (2005), "Technological Resources and New Firm Growth: A Comparison of Start-up and Adolescent Ventures", Keister, L.A. (Ed.) Entrepreneurship (Research in the Sociology of Work, Vol. 15), Emerald Group Publishing Limited, Leeds, pp. 101-122. https://doi.org/10.1016/S0277-2833(05)15005-5