IB  Vol.3 No.3 , September 2011
Generative Mechanisms of Growth of a New High-Tech Firm
ABSTRACT
In this paper we conduct a review on the studies on firm growth and suggest some criticism towards growth research so far. We address that it could be time to approach firm growth from processual and cross-disciplinary starting point. Based on this assumption we carried out a literature review of the studies on firm growth, entrepreneurship, organizational change and high-tech industry. We identified the following factors to have an impact on the emergence of growth of a new high-tech firm: 1) resources of the firm, 2) firm’s strategic posture, 3) business opportunity, 4) business environment 5) growth behavior, 6) opportunity exploitation, and 7) outcome of the process. Building on these elements and interaction among them we describe the behavior which we call in this paper as generative mechanisms of growth. We also propose a theoretical framework for studying the emergence of growth of a new high-tech firm.

Cite this paper
nullV. Puhakka and S. Sipola, "Generative Mechanisms of Growth of a New High-Tech Firm," iBusiness, Vol. 3 No. 3, 2011, pp. 266-273. doi: 10.4236/ib.2011.33035.
References
[1]   M. Colombo and L. Grilli, “Founders’ Human Capital and the Growth of New Technology-Based Firms: A Competence-Based View,” Research Policy, Vol. 34, No. 6, 2005, pp. 795-816. doi:10.1016/j.respol.2005.03.010

[2]   G. Haour, “Israel, a Powerhouse for Networked Entrepreneurship,” International Journal of Entrepreneurship and Innovation Management, Vol. 5, No. 1/2, 2005, pp. 39-48. doi:10.1504/IJEIM.2005.006336

[3]   C. Christensen and M. Raynor, “Innovator’s Solution,” Harvard University Press, Cambridge, 2003.

[4]   K. Weick and K. Sutcliffe, “Managing the Unexpected: Resilient Performance in an Age of Uncertainty,” Jossey- Bass, San Francisco, 2007.

[5]   B. Carlsson and G. Eliasson, “Industrial Dynamics and Endogenous Growth,” Industry and Innovation, Vol. 10, No. 4, 2003, pp. 435-455. doi:10.1080/1366271032000163676

[6]   M. Pohjola, “The New Economy in Growth and Development,” Oxford Review of Economic Policy, Vol. 18, No. 3, 2002, pp. 380-396. doi:10.1093/oxrep/18.3.380

[7]   P. M. Romer, “Increasing Returns and Long-Run Growth,” Journal of Political Economy, Vol. 94, No. 5, 1986, pp. 1002-1037. doi:10.1086/261420

[8]   J. A. Schumpeter, “The Theory of Economic Development,” Harvard University Press, Cambridge, 1934.

[9]   R. M. Solow, “A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, Vol. 70, No. 1, 1956, pp. 65-94. doi:10.2307/1884513

[10]   D. J. Hoch, C. R. Roeding, G. Purkert, S. K. Lindner and R. Mueller, “Secrets of High-Tech Success: Management Insights from 100 High-Tech Firms around the World,” Harvard Business School Press, Boston, 1999.

[11]   P. Davidsson and J. Wiklund, “Conceptual and Empirical Challenges in the Study of Firm Growth,” In: D. Sexton and H. Landstr?m, Eds., The Blackwell Handbook of Entrepreneurship, Blackwell, Oxford, 2000, pp. 26-44.

[12]   F. Delmar, P. Davidsson and W. B. Gartner, “Arriving at the High-Growth Firm,” Journal of Business Venturing, Vol. 18, No. 2, 2003, pp. 189-216. doi:10.1016/S0883-9026(02)00080-0

[13]   E. T. Penrose, “The Theory of the Growth of the Firm,” Oxford University Press, Oxford, 1959.

[14]   B. R. Barringer, F. F. Jones and D. O. Neubaum, “A Quantitative Content Analysis of the Characteristics of Rapid-Growth Firms and Their Founders,” Journal of Business Venturing, Vol. 20, No. 5, 2005, pp. 663-687. doi:10.1016/j.jbusvent.2004.03.004

[15]   P. Davidsson, F. Delmar and J. Wiklund, “Entrepreneurship and the Growth of Firms,” Edward Elgar Publishing Limited, Cheltenham, 2006.

[16]   F. Delmar, “Measuring Growth: Methodological Consi- derations and Empirical Results,” In: R. Donckels and A. Miettinen, Eds., Entrepreneurship and SME Research: On Its Way to the Next Millennium, Aldershot, Brookfield, 1997, pp. 190-216.

[17]   M. Dobbs and R. T. Hamilton, “Small Business Growth: Recent Evidence and New Directions,” International Journal of Entrepreneurial Behaviour and Research, Vol. 13, No. 5, 2007, pp. 296-322. doi:10.1108/13552550710780885

[18]   S. Zahra, H. Sapienza and P. Davidsson, “Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda,” Journal of Management Studies, Vol. 43, No. 4, 2006, pp. 917-955. doi:10.1111/j.1467-6486.2006.00616.x

[19]   A. H. Van de Ven and M. S. Poole, “Explaining Development and Change in Organizations,” Academy of Management Review, Vol. 20, No. 3, 1995, pp. 510-540. doi:10.2307/258786

[20]   L. E. Greiner, “Evolution and Revolution as Organizations Grow,” Harvard Business Review, Vol. 50, No. 4, 1972, pp. 37-45. doi:10.1111/j.1741-6248.1997.00397.x

[21]   H. Tsoukas and R. Chia, “On Organizational Becoming: Rethinking Organizational Change,” Organisation Science, Vol. 13, No. 5, 2002, pp. 567-582. doi:10.1287/orsc.13.5.567.7810

[22]   A. H. Van de Ven and M. S. Poole, “Alternative Approaches for Studying Organizational Change,” Organisation Studies, Vol. 27, No. 11, 2005, pp. 1617-1638. doi:10.1177/0170840605056907

[23]   G. Burrell and G. Morgan, “Sociological Paradigms and Organizational Analysis,” Heinemann, London, 1979.

[24]   A. Rehn, L. Stranneg?rd and K. Tryggestad, “Putting Process through Its Paces,” Scandinavian Journal of Management, Vol. 23, No. 3, pp. 229-232. doi:10.1016/j.scaman.2007.05.002

[25]   H. Tsoukas, “The Validity of Idiographic Research Explanations,” Academy of Management Review, Vol. 14, No. 4, 1989, pp. 551-561. doi:10.5465/AMR.1989.4308386

[26]   D. Dutta and S. Thornhill, “The Evolution of Growth Intentions: Toward a Cognition-Based Model,” Journal of Business Venturing, Vol. 23, No. 3, 2008, pp. 307-332. doi:10.1016/j.jbusvent.2007.02.003

[27]   S. D. Sarasvathy, “Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency,” Academy of Management Review, Vol. 26, No. 2, 2001, pp. 243-288. doi:10.2307/259121

[28]   D. G. Messerschmitt and C. Szyperski, “High-Tech Ecosystem: Understanding an Indispensable Technology and Industry,” MIT Press, Cambridge, 2003.

[29]   J. Park, “Opportunity Recognition and Product Inno- vation in Entrepreneurial Hi-Tech Start-Ups: A New Perspective and Supporting Case Study,” Technovation, Vol. 25, No. 7, 2005, pp. 739-752. doi:10.1016/j.technovation.2004.01.006

[30]   B. Johannisson, “Economies of Overview-Guiding the External Growth of Small Firms,” International Small Business Journal, Vol. 9, No. 1, 1990, pp. 32-44.

[31]   S. L. Brown and K. M. Eisenhardt, “The Art of Continuous Change: Linking Complexity Theory and Time-Paced Evolution in Rentlessly Shifting Organizations,” Administrative Science Quarterly, Vol. 42, No. 1, 1997, pp. 1- 34.

[32]   Y.-F. Kuo and C.-W. Yu, “3G Telecommunication Operators’ Challenges and Roles: A Perspective of Mobile Com- merce Value Chain,” Technovation, Vol. 26, No. 12, 2006, pp. 1347-1356. doi:10.1016/j.technovation.2005.08.004

[33]   E. Carayannis, D. Popescu, C. Sipp and M. Stewart, “Technological Learning for Entrepreneurial Deve- lopment (TL4ED) in the Knowledge Economy (KE): Case Studies and Lessons Learned,” Technovation, Vol. 26, No. 4, 2006, pp. 419-443.

[34]   P. Davidsson, “A Conceptual Framework for the Study of Entrepreneurship and the Competence to Practice it.” JIBS Working Paper Series, J?nk?ping University, J?nk?ping, 2000.

[35]   R. Amit, L. Glosten and E. Muller, “Challenges to Theory Development in Entrepreneurship Research,” Journal of Management Studies, Vol. 30, No. 5, 1993, pp. 815-834. doi:10.1111/j.1467-6486.1993.tb00327.x

[36]   S. A. Shane and S. Venkataraman, “The Promise of Entrepreneurship as a Field of Research,” Academy of Management Review, Vol. 25, No. 1, 2000, pp. 217-226. doi:10.2307/259271

[37]   S. Venkataraman, S., “The Distinctive Domain of Entrepreneurship Research: An Editor’s Perspective,” In: J. Katz and R. Brockhaus, Eds., Advances in Entrepreneurship, Firm Emergence and Growth, JAI Press, Greenwich, 1997, pp. 119-138.

[38]   J. Wiklund, “Entrepreneurial Orientation as Predictor of Entrepreneurial Behavior and Performance in Small Firms—Longitudinal Evidence,” In: P. D. Reynolds, W. B. Bygrave, N. M. Carter, S. Manigart, C. M. Mason, G. D. Meyer and K. G. Shaver, Eds., Frontiers of Entrepreneurship Research, Babson College, Wellesley, 1998, pp. 283-296.

[39]   J. Wiklund and D. Shepherd, “Entrepreneurial Orientation and Small Business Performance: A Configurational Approach,” Journal of Business Venturing, Vol. 20, No 1, 2005, pp. 71-91. doi:10.1016/j.jbusvent.2004.01.001

[40]   T. Baker and R. E. Nelson, “Creating Something from Nothing: Resource Construction through Entrepreneurial Bricolage,” Administrative Science Quarterly, Vol. 50, No. 3, 2005, pp. 329-366. doi:10.2189/asqu.2005.50.3.329

[41]   I. C. MacMillan and D. L. Day, “Corporate Ventures into Industrial Markets: Dynamics of Aggressive Entry,” Journal of Business Venturing, Vol. 2, No. 1, 1987, pp. 29-39. doi:10.1016/0883-9026(87)90017-6

[42]   R. Siegel, E. Siegel and I. C. MacMillan, “Characteristics Distinguishing High-Growth Ventures,” Journal of Business Venturing, Vol. 8, No. 2, 1993, pp. 169-180. doi:10.1016/0883-9026(93)90018-Z

[43]   E. Autio and A. Lumme, “Does the Innovator Role Affect the Perceived Potential for Growth? Analysis of Four Types of New, Technology-Based Firms,” Technology Analysis & Strategic Management, Vol. 10, No. 1, 1998, pp. 41-54. doi:10.1080/09537329808524303

[44]   A. C. Cooper and F. J. Gimeno-Gascon, “Entrepreneurs, Processes of Founding and New Firm Performance,” In: D. Sexton and J. Kasarda, Eds., The State of the Art in Entrepreneurship, PWS Publishing Co., Boston, 1992, pp.301-340.

[45]   E. Shaw and S. Conway, “Networking and the Small Firm,” In: S. Carter and D. Jones-Evans Eds., Enterprise and Small Business, Prentice Hall, Harlow, 2000.

[46]   R. Saemundsson and ? Dahlstrand, “How Business Opportunities Constrain Young Technology-Based Firms from Growing into Medium-Sized Firms,” Small Business Economics, Vol. 24, No. 2, 2005, pp. 113-129. doi:10.1007/s11187-003-3803-6

[47]   S. D. Sarasvathy, S. Venkataraman, N. Dew and R. Velamuri, “Three Views of Entrepreneurial Opportunity,” In: Z. J. Acs and D. B. Audretsch, Eds., Handbook of Entrepreneurship, Kluwer Academic Publishers, Boston, 2003, pp. 141-160.

[48]   E. Garnsey, “A Theory of the Early Growth of the Firm,” Industrial and Corporate Change, Vol. 13, No. 3, 1998, pp. 523-556. doi:10.1093/icc/7.3.523

[49]   G. Hamel and C. K. Prahalad, “The Core Competence of the Corporation,” Harvard Business Review, Vol. 68, No. 3, 1990, pp. 79-91.

[50]   W. C. Kim and R. Mauborgne, “Value Innovation: The Strategic Logic of High Growth,” Harvard Business Review, Vol. 75, No. 1, 1997, pp. 102-112.

[51]   R. M. Grant, “The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation,” California Management Review, Vol. 33, No. 2, 1991, pp. 114-135.

[52]   L. Kolvereid, “Growth Aspirations among Norwegian Entrepreneurs,” Journal of Business Venturing, Vol. 7, No. 3, 1992, pp. 209-222. doi:10.1016/0883-9026(92)90027-O

[53]   E. Cadotte and R. Woodruff, “Analysing Market Opportunities for New Ventures,” In: G. Hills, Ed., Marketing and Entrepreneurship: Research Ideas and Opportunities, Greenwood Press, Westport, CT, 1994.

[54]   A. De Koning and D. Muzyka, “The Convergence of Good Ideas: When and How Do Entrepreneurial Managers Recognize Innovative Business Ideas?,” In: N. Churchill, W. Bygrave, J. Butler, S. Birley, P. Davidsson, W. Gartner and P. McDougall, Eds., Frontiers of Entrepreneurship Research, Babson College, Wellesley, 1996.

[55]   F. J. Aguilar, “Scanning the Business Environment,” MacMillan Co., New York, 1967.

[56]   D. Miller, “The Correlates of Entrepreneurship in Three Types of Firms,” Management Science, Vol. 29, No. 7, 1983, pp. 770-791. doi:10.1287/mnsc.29.7.770

[57]   P. S. Christensen, O. O. Madsen and R. Peterson, “Conseptualizing Entrepreneurial Opportunity Identification,” In: G. Hills, Ed., Marketing and Entrepreneurship: Research Ideas and Opportunities, Greenwood Press, Westport, 1994.

[58]   A. C. Cooper, “Strategic Management: New Ventures and Small Business,” Long Range Planning, Vol. 14, No. 5, 1981, pp. 39-45. doi:10.1016/0024-6301(81)90006-6

[59]   G. Hills, “Opportunity Recognition by Successful Entrepreneurs: A Pilot Study,” In: M. Hay, W. Bygrave, S. Birley, N. Churchill, R. Keeley and W. Wetzel Jr., Eds., Frontiers of Entrepreneurship Research, Babson College, Wellesley, 1995.

[60]   B. Gilad, “Entrepreneurship: The Issue of Creativity in the Market Place,” Journal of Creative Behavior, Vol. 18, No. 3, 1984, pp. 151-161.

[61]   R. Peterson, “Creating Contexts for New Ventures in Stagnating Environments,” In: J. Hornaday, E. Shils, J. Timmons and K. Vesper, Eds., Frontiers of Entrepreneurship Research, Babson College, Wellesley, 1985.

[62]   D. O. McKee, P. R. Varadarajan and W. M. Pride, “Strategic Adaptability and Firm Performance: A Market- Contingent Perspective,” Journal of Marketing, Vol. 53, No. 3, 1989, pp. 21-35. doi:10.2307/1251340

[63]   F. A. Hayek, “The Use of Knowledge in Society,” American Economic Review, Vol. 35, No. 4, 1945, pp. 519-530.

 
 
Top