Entry and Technological Performance in New Technology Domains: Technological Opportunities, Technology Competition and Technological Relatedness

35 Pages Posted: 7 Nov 2016

See all articles by Bart Leten

Bart Leten

KU Leuven - Faculty of Business and Economics (FEB)

René Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation; Maastricht University - Department of Organization & Strategy

Bart Van Looy

KU Leuven

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Date Written: December 2016

Abstract

Entry and success in new technology domains (NTDs) is essential for firms' long‐term performance. We argue that firms' choices to enter NTDs and their subsequent performance in these domains are not only governed by firm‐level factors but also by environmental characteristics. Entry is encouraged by the richness of opportunities for technology development, while technology competition by incumbent firms discourages entry and render entries that do take place less successful. Firms are expected to be positioned heterogeneously to recognize and capitalize on technological opportunities, depending on the presence of a related technology base. We find qualified support for these conjectures in a longitudinal analysis of entry and technological performance in NTDs by 176 R&D intensive firms. While opportunity rich technology environments attract entries by firms even if these NTDs are distal from firms' existing technologies, firms require related technological expertise in order to exploit technological opportunities post‐entry.

Keywords: competition, entry, innovation, relatedness, technological opportunities, technology search

Suggested Citation

Leten, Bart and Belderbos, Rene and Looy, Bart Van, Entry and Technological Performance in New Technology Domains: Technological Opportunities, Technology Competition and Technological Relatedness (December 2016). Journal of Management Studies, Vol. 53, Issue 8, pp. 1257-1291, 2016, Available at SSRN: https://ssrn.com/abstract=2864705 or http://dx.doi.org/10.1111/joms.12215

Bart Leten (Contact Author)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Rene Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation ( email )

Naamsestraat 69
Leuven, B-3000
Belgium
+32 16 32 6912 (Phone)
+32 16 32 6732 (Fax)

Maastricht University - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Bart Van Looy

KU Leuven

Oude Markt 13
Leuven, 3000
Belgium

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