On the interconnectedness of value network maturity and new technology-based firm survival

Christina Ungerer, Marc Konig, Guido Baltes, Kanetaka Maki

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

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.

Original languageEnglish
Title of host publication2017 International Conference on Engineering, Technology and Innovation
Subtitle of host publicationEngineering, Technology and Innovation Management Beyond 2020: New Challenges, New Approaches, ICE/ITMC 2017 - Proceedings
EditorsJoao Pedro Mendonca, Ricardo Jardim-Goncalves, Joao Martins, Alain Zarli, Maria Marques, Marc Pallot
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages919-929
Number of pages11
Volume2018-January
ISBN (Electronic)9781538607749
DOIs
Publication statusPublished - 2018 Feb 2
Externally publishedYes
Event23rd International Conference on Engineering, Technology and Innovation, ICE/ITMC 2017 - Madeira Island, Portugal
Duration: 2017 Jun 272017 Jun 29

Other

Other23rd International Conference on Engineering, Technology and Innovation, ICE/ITMC 2017
CountryPortugal
CityMadeira Island
Period17/6/2717/6/29

    Fingerprint

Keywords

  • Business Plan
  • IT NTBFs
  • New Technology-Based Firms
  • Survival Capability
  • Transaction Relations
  • Value Network

ASJC Scopus subject areas

  • Computer Science Applications
  • Software
  • Engineering (miscellaneous)
  • Computer Networks and Communications

Cite this

Ungerer, C., Konig, M., Baltes, G., & Maki, K. (2018). On the interconnectedness of value network maturity and new technology-based firm survival. In J. P. Mendonca, R. Jardim-Goncalves, J. Martins, A. Zarli, M. Marques, & M. Pallot (Eds.), 2017 International Conference on Engineering, Technology and Innovation: Engineering, Technology and Innovation Management Beyond 2020: New Challenges, New Approaches, ICE/ITMC 2017 - Proceedings (Vol. 2018-January, pp. 919-929). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/ICE.2017.8279981