Functional Management Competence and Growth of Young Technology-Based Firms

18 Pages Posted: 14 Aug 2008

See all articles by Sören Salomo

Sören Salomo

Danish Technical University

Jan Brinckmann

Loyola University of Chicago

Katrin Talke

University of Graz - Technology and Innovation Management

Abstract

Acknowledging an increased research interest into the success factors for young technology-based firms in the last decade, the present study serves two main purposes. First, we aim at developing a comprehensive concept of functional management competence in young technology-based firms. Functional management competence covers the understanding of and proficiency in managing specific functional tasks (Katz, 1974). As we focus on young technology-based firms, it is suggested that marketing, financial and technology management tasks are at the core of functional management competence. Second, we aim at delineating and validating an appropriate measurement model for functional management competence. In order to test the model's nomological validity, we investigate the impact of functional management competence on firm growth. Therefore, building on established firm development approaches, we propose a phase model for the development of young technology-based firms. Our study builds upon data from 212 young technology-based firms in the field of microtechnology, nanotechnology, electronics, optics and lasers. We use formative measurement models to establish valid and reliable constructs and a path model based on partial least squares modelling to investigate the performance effects. The results suggest that functional management competences generally are significant drivers of firm development speed. In particular, technology and marketing management competences are shown to impact development speed. While technology management competence is positively driving development speed, the marketing management competence impact on speed is mediated by competitive advantage of the new products developed by young technology-based firms. Financial management competence has no significant link to firm development speed.

Suggested Citation

Salomo, Sören and Brinckmann, Jan and Talke, Katrin, Functional Management Competence and Growth of Young Technology-Based Firms. Creativity and Innovation Management, Vol. 17, Issue 3, pp. 186-203, September 2008, Available at SSRN: https://ssrn.com/abstract=1224089 or http://dx.doi.org/10.1111/j.1467-8691.2008.00485.x

Sören Salomo (Contact Author)

Danish Technical University ( email )

TEM Center
Produktionstorvet, Bygn. 421
Kgs. Lyngby (Copenhagen), 2800
Denmark

Jan Brinckmann

Loyola University of Chicago ( email )

25 East Pearson Street
Chicago, IL 60611
United States

Katrin Talke

University of Graz - Technology and Innovation Management ( email )

A-8010 Graz
Austria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4
Abstract Views
1,458
PlumX Metrics