Defining the Relationship Among Founding Resources, Strategies, and Performance in Technology-Intensive New Ventures: Evidence from the Semiconductor Silicon Industry

29 Pages Posted: 28 Aug 2007

See all articles by Scott L. Newbert

Scott L. Newbert

Zicklin School of Business, Baruch College - The City University of New York

Bruce A. Kirchhoff

New Jersey Institute of Technology

Steven T. Walsh

University of New Mexico - Robert O. Anderson Schools of Management

Abstract

The degree to which a firm's performance is dependent on its resources and strategies is widely debated in the literature. We examine this issue by analyzing historical data on the entire population of new independent firms started worldwide in the semiconductor silicon industry for the first 50 years of its existence. We measure resources (managerial capabilities and technological competencies) and strategies (emphasis on demand pull or technology push) at the time of founding and test their relationship with each other as well as with multiple measures of performance (lifespan and best year's sales). We find that firms founded on managerial capabilities emphasize demand-pull strategies at founding, whereas firms founded upon technological competencies emphasize technology-push strategies at founding. We also find that firms emphasizing technology-push strategies perform better than firms emphasizing demand-pull strategies. Lastly, we find that though managerial capabilities are related to a firm's best year's sales, this relationship is mediated by the firm's founding strategy.

Suggested Citation

Newbert, Scott L. and Kirchhoff, Bruce A. and Walsh, Steven T., Defining the Relationship Among Founding Resources, Strategies, and Performance in Technology-Intensive New Ventures: Evidence from the Semiconductor Silicon Industry. Journal of Small Business Management, Vol. 45, Issue 4, pp. 438-466, October 2007. Available at SSRN: https://ssrn.com/abstract=1008088 or http://dx.doi.org/10.1111/j.1540-627X.2007.00222.x

Scott L. Newbert (Contact Author)

Zicklin School of Business, Baruch College - The City University of New York ( email )

NY
United States

Bruce A. Kirchhoff

New Jersey Institute of Technology ( email )

323 Martin Luther King Blvd.
Newark, NJ 07102
United States
973-596-5658 (Phone)
973-596-3074 (Fax)

Steven T. Walsh

University of New Mexico - Robert O. Anderson Schools of Management

Albuquerque, NM 87131
United States

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