The Effect of a Market Orientation, Entrepreneurial Orientation, and Technological Capability on Innovativeness: A Study of Young Biotechnology Ventures in the United States and in Scandinavia

39 Pages Posted: 16 Jun 2009  

Maija Renko

University of Illinois at Chicago

Alan L. Carsrud

Florida International University (FIU)

Malin Brännback

Åbo Akademi University

Abstract

Previous research suggests that in order to excel in innovativeness, a firm should simultaneously be market oriented, proactive, and willing to take risks, as well as have access to superior technological assets and capabilities. However, the contribution of these factors on innovative outcomes has seldom been assessed in one study. This study investigates influences of market orientation, entrepreneurial orientation, and technological capabilities on technology ventures' innovativeness. Data for this study were collected through personal interviews in biotechnology startups in the United States, Finland, and Sweden. As expected, results indicate a significant link between technological capability and product innovativeness. However, neither market orientation nor entrepreneurial orientation is related to product innovativeness in this empirical context where firms typically aim at launching radical, disruptive innovations. The drivers of capital investments, however, are different from the antecedents of product innovativeness. Differences between the Nordic and U.S.-based biotechnology ventures are also identified.

Suggested Citation

Renko, Maija and Carsrud, Alan L. and Brännback, Malin, The Effect of a Market Orientation, Entrepreneurial Orientation, and Technological Capability on Innovativeness: A Study of Young Biotechnology Ventures in the United States and in Scandinavia. Journal of Small Business Management, Vol. 47, Issue 3, pp. 331-369, July 2009. Available at SSRN: https://ssrn.com/abstract=1417662 or http://dx.doi.org/10.1111/j.1540-627X.2009.00274.x

Maija Renko

University of Illinois at Chicago ( email )

601 S. Morgan St. (M/C 243)
University Hall 2203
Chicago, IL 60607-7122
United States

Alan L. Carsrud

Florida International University (FIU) ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Malin Brännback

Åbo Akademi University ( email )

Piispankatu 16
Abo, Turku FIN-20500
Finland

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