TY - GEN
T1 - On the interconnectedness of value network maturity and new technology-based firm survival
AU - Ungerer, Christina
AU - Konig, Marc
AU - Baltes, Guido
AU - Maki, Kanetaka M.
N1 - Funding Information:
This work is sponsored by the DZ Bank Stiftung, by Nesta in the context of the Innovation Growth Lab, and the ‘EXI Gründungsgutscheine’ project, co-funded by the Federal State of Baden-Württemberg and the European Social Fund (ESF).
Funding Information:
“We used the price money from an award to cooperate with…” (ID 21) “The founders are supported by the grant program ‘Young Innovators’ for the first three years…” (ID 11)
Publisher Copyright:
© 2017 IEEE.
Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2018/2/2
Y1 - 2018/2/2
N2 - We examine to what extent a transaction relation-based value network maturity status of New Technology-Based Firms (NTBFs) is related to their survival. A specific challenge of NTBFs is their lack of market-orientation, which is why the maturity of the ties they form towards the market in terms of customers, financiers, personnel and partners is supposed to be a strong indicator for survival. We analyze a sample of 170 NTBFs by capturing their value network status from business plans and defining their survival status using secondary research. Simple statistical tests and regressions suggest that the official registration of the business is a pre-step for survival that requires industry-specific value network dimension strengths. A sub-sample survival analysis shows that for all NTBFs that have reached registration, regardless of their industry, a stronger customer value network maturity dimension prevents from failure and is thus a significant predictor for survival. Moreover, the analyses partly support the idea that NTBFs from the IT sector are less dependent on a strong value network in the financier dimension to survive. The results are of relevance for both practitioners and researchers in the innovation system: a better understanding of the factors impacting on NTBF survival can help to provide more tailored support services for young firms, increase the effectiveness of resource allocations, and provide a basis for further research.
AB - We examine to what extent a transaction relation-based value network maturity status of New Technology-Based Firms (NTBFs) is related to their survival. A specific challenge of NTBFs is their lack of market-orientation, which is why the maturity of the ties they form towards the market in terms of customers, financiers, personnel and partners is supposed to be a strong indicator for survival. We analyze a sample of 170 NTBFs by capturing their value network status from business plans and defining their survival status using secondary research. Simple statistical tests and regressions suggest that the official registration of the business is a pre-step for survival that requires industry-specific value network dimension strengths. A sub-sample survival analysis shows that for all NTBFs that have reached registration, regardless of their industry, a stronger customer value network maturity dimension prevents from failure and is thus a significant predictor for survival. Moreover, the analyses partly support the idea that NTBFs from the IT sector are less dependent on a strong value network in the financier dimension to survive. The results are of relevance for both practitioners and researchers in the innovation system: a better understanding of the factors impacting on NTBF survival can help to provide more tailored support services for young firms, increase the effectiveness of resource allocations, and provide a basis for further research.
KW - Business Plan
KW - IT NTBFs
KW - New Technology-Based Firms
KW - Survival Capability
KW - Transaction Relations
KW - Value Network
UR - http://www.scopus.com/inward/record.url?scp=85047516521&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85047516521&partnerID=8YFLogxK
U2 - 10.1109/ICE.2017.8279981
DO - 10.1109/ICE.2017.8279981
M3 - Conference contribution
AN - SCOPUS:85047516521
T3 - 2017 International Conference on Engineering, Technology and Innovation: Engineering, Technology and Innovation Management Beyond 2020: New Challenges, New Approaches, ICE/ITMC 2017 - Proceedings
SP - 919
EP - 929
BT - 2017 International Conference on Engineering, Technology and Innovation
A2 - Mendonca, Joao Pedro
A2 - Jardim-Goncalves, Ricardo
A2 - Martins, Joao
A2 - Zarli, Alain
A2 - Marques, Maria
A2 - Pallot, Marc
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 23rd International Conference on Engineering, Technology and Innovation, ICE/ITMC 2017
Y2 - 27 June 2017 through 29 June 2017
ER -