Search results

1 – 10 of 117
Open Access
Article
Publication date: 5 July 2022

Linus Thomson

The purpose of this paper is to investigate how new technology-based firms (NTBFs) overcome established notions of scale and scope through business model innovation…

Abstract

Purpose

The purpose of this paper is to investigate how new technology-based firms (NTBFs) overcome established notions of scale and scope through business model innovation, leveraging the value from digitalization.

Design/methodology/approach

The study adopts an exploratory research design, drawing on a novel data set of 50 publicly available interviews with vertical farming (VF) industry leaders and insiders who represent 36 different organizations from North America and Europe.

Findings

The study develops a framework showing how NTBFs leverage the value from digitalization via a paradoxical approach combining both efficiency and novelty value drivers.

Originality/value

The study extends current theorizing on the desirability of a combined business model approach leveraging both efficiency and novelty from digitalization. Furthermore, the study is among the first to investigate the unique and highly technological context of VF.

Details

Journal of Manufacturing Technology Management, vol. 33 no. 9
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 2 June 2022

Heikki Rannikko, Mickaël Buffart, Anders Isaksson, Hans Löfsten and Erno T. Tornikoski

This study investigates a mediational model between legitimated elements, financial resource mobilisation and subsequent early firm growth among New Technology-Based Firms…

Abstract

Purpose

This study investigates a mediational model between legitimated elements, financial resource mobilisation and subsequent early firm growth among New Technology-Based Firms (NTBFs) using conformity and control perspectives of legitimacy.

Design/methodology/approach

To test the hypotheses, a longitudinal database of 303 NTBFs from Sweden, Finland and France is used. The ordinary least square regression analysis method is applied, and the proposed mediation relationships are studied by employing the four-step approach developed by Baron and Kenny (1986).

Findings

This study finds that based on the conformity principle, two out of three legitimated elements (business plan and incubator relationship, but not start-up experience) have an impact on financial resource mobilisation, which in turn, is associated with early growth in NTBFs based on the control principle. Thus, financial resource mobilisation positively mediates the relationships among the two legitimated elements and early growth in NTBFs.

Research limitations/implications

This study has several limitations, which also generate promising pathways for future research. Future research should study the relationship between the three legitimacy elements and financial resource mobilisation and early growth across a wider range of firms and settings. The questionnaire was also based on a single point in time and could not capture the evolving nature of the legitimacy elements and fundraising. Hence, future research can examine the multidimensionality of these processes; longitudinal qualitative studies can be a complement, allowing for a better understanding of the impact of legitimacy on NTBFs.

Practical implications

The findings offer implications for managers of NTBFs because developing legitimacy is critical to NTBFs early growth and development. The findings indicate that NTBFs' founders must systematically develop business plans and that incubators help enhance legitimacy through a signalling.

Social implications

It is believed that the study meaningfully contributes to the collective understanding of the role of legitimacy in driving the development of NTBFs. Given the importance of NTBFs in our economies, coupled with the lack of attention given to the role of mobilisation of external resources in explaining NTBF early growth, it is believed that the study is both timely and important.

Originality/value

The findings meaningfully contribute to the collective understanding of NTBF growth. While there are studies that have examined the antecedents of growth and finance separately, this study proposes a novel mediational model that integrates both and tests it empirically.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 28 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 26 January 2010

Tommaso Buganza, Martin Gerst and Roberto Verganti

New technology‐based firms (NTBFs) play a growing role in national economies. Given their nature, it is possible to suppose that these companies should manage their…

1520

Abstract

Purpose

New technology‐based firms (NTBFs) play a growing role in national economies. Given their nature, it is possible to suppose that these companies should manage their development processes by leveraging on flexibility. Thus, the main purpose of the paper is to understand to what extent NTBFs apply the methods and tools identified in the existing literature to increase the flexibility of new product development (NPD) processes.

Design/methodology/approach

Eight in‐depth case studies are conducted in order to draw and test a questionnaire for the extended research. Then, the questionnaire is submitted to 550 firms obtaining a final sample of 48. The first step of data analysis, based on factor analysis methodology, allows to reduce and clarify the practices applied by companies to increase the flexibility of the innovation process. The second step allows, using one‐way ANOVA, to understand which practices for managing innovation processes are used in significantly different ways by high‐ and low‐performing companies in the sample.

Findings

The first result is that, in their development processes, NTBFs pay major attention to: management of technology; management of the NPD process; and management of competencies. A second relevant result is that high‐performing NTBFs, despite their peculiar characteristics, do apply the majority of the best practices identified in literature for technology‐based companies.

Originality/value

Even though NTBFs have been studied for some time now, seldom have these studies focused on their innovation management processes. This paper does it by going in the detail of the organizational and process variables that can increase the flexibility of this process.

Details

European Journal of Innovation Management, vol. 13 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 2 October 2017

Yuchen Gao and Yimei Hu

This study aims to explore key factors and specific ways for the upgrade to hybrid incubators in the context of China. A hybrid incubator means that a technology-based…

Abstract

Purpose

This study aims to explore key factors and specific ways for the upgrade to hybrid incubators in the context of China. A hybrid incubator means that a technology-based business incubators (TBIs) can implement various distinct value creation processes with the integration of the advantages of non-for-profit and for-profit TBIs at same time as Chinese government now requires government-sponsored non-for-profit TBIs to be profitable self-sustainability with less dependent on direct public subsidies, aiming to motivate these TBIs to provide higher quality services for their tenant new technology-based firms (NTBFs).

Design/methodology/approach

This study conducts a single in-depth case-study of Tuspark Incubator (located in Tsinghua Science Park [TSP]) with categorical analysis.

Findings

Three factors, i.e. incubation subdivision, intermediary platform and proactive approach, are found to be essential for a formerly government-sponsored TBI’s upgrading. Incubation subdivision enables Tuspark Incubator to create multiple incubation processes with incubator characteristic variables of both non-for-profit and for-profit incubators; with the establishment of intermediary platform, Tuspark Incubator provides specialized business support and high-quality networking from relevant specialized service organizations external to the incubator; more proactive approach with equity investment on incubating firms from Tuspark Incubator help to generate social welfare and financial profit at the same time.

Practical implications

For the incubators’ managers, incubation subdivision enables TBIs to operate for-profit and non-for-profit processes at the same time and provides different specific needs; more open intermediary service platforms can leverage the full potential of the actors in innovation system and help TBIs to save resource when upgrading to hybrid incubators; proactive approaches nurture learning climate and entrepreneurship environment to enhance the successful rate on NTBFs inside incubators and provide main profit source for incubators. For policy makers, using proactive approaches including creating a good milieu for incubation on technology-based start-ups and the design of public guidance funds is increasingly crucial.

Originality/value

This research is a pioneering study on the key factors and specific ways for the upgrade of government-sponsored non-for-profit TBIs in China to hybrid for-profit and non-for-profit incubators.

Details

Journal of Science and Technology Policy Management, vol. 8 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

Book part
Publication date: 1 January 2008

Teresa Hogan and Elaine Hutson

Despite their increasing importance in innovation, employment creation and economic growth, there is a dearth of theory-driven research on the financing and capital…

Abstract

Despite their increasing importance in innovation, employment creation and economic growth, there is a dearth of theory-driven research on the financing and capital structure of new technology-based firms (NTBFs).1 Hogan and Hutson (2005a) advance the High-Technology Pecking Order Hypothesis (HTPOH) to explain the role of equity in the financing of NTBFs in the software product sector. The HTPOH posits that NTBFs exhibit a hierarchical pattern of financing that gives precedence to internal sources, but if external financing is required, equity is preferred to debt. This study investigates the extent to which the genesis of the NTBF affects its financing patterns?

Details

New Technology-Based Firms in the New Millennium
Type: Book
ISBN: 978-0-0805-5448-8

Article
Publication date: 15 April 2022

Diego Matricano

Diversity in entrepreneurship has become a noteworthy topic of research since consistent differences – and few similarities, if any – exist among entrepreneurial profiles…

Abstract

Purpose

Diversity in entrepreneurship has become a noteworthy topic of research since consistent differences – and few similarities, if any – exist among entrepreneurial profiles. The present paper aims to compare different entrepreneurial profiles managing innovation processes in new technology-based firms (NTBFs). In particular, attention is focussed on young entrepreneurs who are in a critical phase of their lifelong learning, the school-to-work transition.

Design/methodology/approach

Statistical elaborations are based on data retrieved from Italian Ministry of Economic Development in January 2021 and carried out through stochastic frontier analyses. Respectively, 1,699 young entrepreneurs, 1,079 female entrepreneurs, 205 ethnic entrepreneurs and 8,224 stereotyped entrepreneurs are considered.

Findings

Factors affecting the performance of innovation processes managed in NTBFs are the same for stereotyped and female entrepreneurs, but they consistently differ for young and ethnic entrepreneurs. Achieved results are not in the position to offer a complete analysis of the phenomenon but – hopefully – can corroborate a very interesting and up-to-date research path that merits further development. In particular, young entrepreneurs disclose an unexpected skills mismatch that should be investigated in-depth.

Originality/value

Most contributions offer a narrow view of entrepreneurial profiles since they focus on one profile per time. The present paper, instead, considers four entrepreneurial profiles and compares them. Moreover, young entrepreneurs reveal an unexpected skills mismatch that underlines the relevance of specific activities of on-the-job training and apprenticeships in order to try to overcome it and improve the results achievable by young entrepreneurs.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 January 2022

Caroline Tarillon

New technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is…

Abstract

Purpose

New technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is observed yet many of them remain small. A better understanding of these trajectories is thus necessary. The purpose of this paper is to explore the influence of individual and organisational factors on 253 growth trajectories of NTBFs.

Design/methodology/approach

The authors use a Heckman ordered probit model to study explanatory factors of growth trajectories in NTBFs created between 1999 and 2012. This method allows them to study the determinants of the presence of a growth dynamics at the same time as the determinants of growth intensity.

Findings

The model shows that entrepreneurs play a weak role in understanding the growth trajectories of their company. Rather, it is organisational factors – such as the level of innovation and the governance structure – that explain initiation of a growth trajectory and the intensity of the growth.

Originality/value

By using an original methodology, the authors highlight the importance of organisational factors and encourage entrepreneurs to develop a governance structure focused on internal stakeholders to support growth.

Details

Journal of Small Business and Enterprise Development, vol. 29 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 9 May 2016

Hans Löfsten

This study aims to analyse organisational capabilities among new technology-based firms (NTBFs) and examine how these capabilities are linked to the firms’ long-term survival.

1113

Abstract

Purpose

This study aims to analyse organisational capabilities among new technology-based firms (NTBFs) and examine how these capabilities are linked to the firms’ long-term survival.

Design/methodology/approach

The study leverages a data set of 131 NTBFs located at 16 incubators in Sweden. The first part of the analysis seeks suitable organisational capabilities as determinants of firm survival. The second part is a statistical analysis. The organisational capabilities comprise six variables concerning business experience, financing and international markets.

Findings

The study comprises two data collections, with the first data collection being conducted in 2005, and the second in 2014. The survival rate for these firms was 55 per cent according to their respective annual reports in 2013. First, this study showed that the logistic regression model that included the three organisational capabilities is significant. Second, one variable is significant at the variable level: business experience. In addition, the control variable firm size is also significant.

Originality/value

Further empirical research in this area is required as the current research on organisational capabilities is quite limited and mainly conceptual in nature. Very few related studies focus on NTBFs and their survival. This study demonstrates a significant logistic regression model to determine links between organisational capabilities and firm survival.

Details

European Business Review, vol. 28 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Article
Publication date: 1 August 1996

Margarida Fontes and Rod Coombs

Based on an empirical study of Portuguese firms, addresses the creation of new technology‐based firms (NBTFs) in small, less developed countries. Assuming that…

639

Abstract

Based on an empirical study of Portuguese firms, addresses the creation of new technology‐based firms (NBTFs) in small, less developed countries. Assuming that technology‐related inputs ‐ at the level of supply and demand ‐ are predominant in NTBF creation, analyses the process through which the founders and other actors identify a technological opportunity and obtain the inputs ‐ technology, funds and market demand ‐ necessary to exploit it. Emphasizes the conditions surrounding the start‐up and early survival of these firms that differ significantly from those found in more advanced countries, uncovering the difficulties confronted by NBTF founders in a relatively unfavourable environment and describing their proactive responses. Concludes that NTBF formation in Portugal has been a learning process, through which the organizational innovation introduced by early pioneer founders, based on foreign role models, become better adjusted to Portuguese conditions.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 2 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Book part
Publication date: 3 February 2015

Robert Gannon, Karen M. Hogan and Gerard T. Olson

New Technology Business Firms are known to be volatile dynamic organizations whose innovations are subject to short life cycles and product imitability. Venture capitalist…

Abstract

New Technology Business Firms are known to be volatile dynamic organizations whose innovations are subject to short life cycles and product imitability. Venture capitalist firms who allocate funds to these start-ups need to evaluate multiple facets associated with the individual firm’s internal and external characteristics, as well as, its own unique objectives and goals. This study applies a multicriteria decision making model to the identification for venture capital firms of potential New Technology Business Firms who are requesting capital infusions.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-78441-211-1

Keywords

1 – 10 of 117