Financial Resource, Technological Competence Development, and Entrepreneurial Growth
Date Issued
2008
Date
2008
Author(s)
LO, SHIH-MIN
Abstract
With market boundaries changing increasingly quickly and technological changes emerging frequently, the strategy of an entrepreneurial firm in building and sustaining its competitive advantage is no longer adequately viewed from a portfolio of business but better considered as a dynamic configuration of resources, capabilities, competences, knowledge, or routines. An appropriate arrangement of technological competences, complementary resources, and learning is required for the entrepreneurial firm in pursuit of new opportunities, supporting a sequence of products or multiple products simultaneously, and appropriating return from innovations. Reviewing existing theory to consider how a firm’s competences evolve and interact with complementary resources and learning, I propose a new construct of technology portfolio structure (TPS) with two distinct dimensions in terms of technology deepening (TD) and technology widening (TW) for explicating the entrepreneurial firm’s technological competence development in a subtle way. These two measures – TD and TW demonstrate the achievement and involvement of an entrepreneurial firm in a variety of technological fields in order to untangle the sources of sustained competitive advantages and help clarify the empirical assessment of the RBV-related theory and corporate diversification. Robust evidence using panel data from a variety of econometric models in Research #1 shows the significant, positive contribution of financial resource on R&D, leaving traditional Schumpeterian hypothesis of firm size on innovation far less influential. Empirical finding from Research #2 confirms my conjecture of the positive impact on the entrepreneurial firm’s TW by its lagged TD, R&D Intensity, and Initial Public Offering (IPO). A “dispersed concentration” of the entrepreneurial firm’s TPS – stable TD and high TW posterior to its IPO is also observed.
Subjects
Deepening
Widening
IPO
R&D
Competence
Type
thesis
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