IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v32y2008i3p529-549.html
   My bibliography  Save this article

Internal Resources, External Network, and Competitiveness during the Growth Stage: A Study of Taiwanese High–Tech Ventures1

Author

Listed:
  • Lei–Yu Wu
  • Chun–Ju Wang
  • Cheng–Ping Chen
  • Lee–Yun Pan

Abstract

This study explores the performance implications of internal resources and external networks for entrepreneurial firms. A relationship of trust among network members is essential because of the high risk during the initial start–up stage. However, once high–tech firms initiate mass production and enter the growth stage, whether trust influences competitiveness more than resources becomes uncertain. This study examines Taiwanese firms to elucidate the main influences on firm competitiveness. In conclusion, the result indicates the competitiveness of high–tech firms during the growth stage is determined by firm resources and the willingness of support firms to cooperate—where willingness is determined by the trust of the support firms in the high–tech firm but is unrelated to firm resources.

Suggested Citation

  • Lei–Yu Wu & Chun–Ju Wang & Cheng–Ping Chen & Lee–Yun Pan, 2008. "Internal Resources, External Network, and Competitiveness during the Growth Stage: A Study of Taiwanese High–Tech Ventures1," Entrepreneurship Theory and Practice, , vol. 32(3), pages 529-549, May.
    • Handle: RePEc:sae:entthe:v:32:y:2008:i:3:p:529-549
    DOI: 10.1111/j.1540-6520.2008.00239.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2008.00239.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2008.00239.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Choonwoo Lee & Kyungmook Lee & Johannes M. Pennings, 2001. "Internal capabilities, external networks, and performance: a study on technology‐based ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 615-640, June.
    2. Gautam Ray & Jay B. Barney & Waleed A. Muhanna, 2004. "Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 23-37, January.
    3. Ostgaard, Tone A. & Birley, Sue, 1996. "New venture growth and personal networks," Journal of Business Research, Elsevier, vol. 36(1), pages 37-50, May.
    4. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    5. Andrea Larson & Jennifer A. Starr, 1993. "A Network Model of Organization Formation," Entrepreneurship Theory and Practice, , vol. 17(2), pages 5-15, January.
    6. Bruno, Albert V. & Tyebjee, Tyzoon T., 1985. "The entrepreneur's search for capital," Journal of Business Venturing, Elsevier, vol. 1(1), pages 61-74.
    7. Jarillo, J. Carlos, 1989. "Entrepreneurship and growth: the strategic use of external resources," Journal of Business Venturing, Elsevier, vol. 4(2), pages 133-147, March.
    8. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    9. Akbar Zaheer & Geoffrey G. Bell, 2005. "Benefiting from network position: firm capabilities, structural holes, and performance," Strategic Management Journal, Wiley Blackwell, vol. 26(9), pages 809-825, September.
    10. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    11. Bruderl, Josef & Preisendorfer, Peter, 1998. "Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-225, May.
    12. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    13. David Krackhardt, 1995. "Entrepreneurial Opportunities in an Entrepreneurial Firm: A Structural Approach," Entrepreneurship Theory and Practice, , vol. 19(3), pages 53-69, April.
    14. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    15. Gounaris, Spiros P., 2005. "Trust and commitment influences on customer retention: insights from business-to-business services," Journal of Business Research, Elsevier, vol. 58(2), pages 126-140, February.
    16. Gautam Ahuja, 2000. "The duality of collaboration: inducements and opportunities in the formation of interfirm linkages," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 317-343, March.
    17. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    18. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    19. Akbar Zaheer & N. Venkatraman, 1995. "Relational governance as an interorganizational strategy: An empirical test of the role of trust in economic exchange," Strategic Management Journal, Wiley Blackwell, vol. 16(5), pages 373-392.
    20. Seungwha (Andy) Chung & Harbir Singh & Kyungmook Lee, 2000. "Complementarity, status similarity and social capital as drivers of alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 1-22, January.
    21. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    22. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    23. Julie M. Hite, 2005. "Evolutionary Processes and Paths of Relationally Embedded Network Ties in Emerging Entrepreneurial Firms," Entrepreneurship Theory and Practice, , vol. 29(1), pages 113-144, January.
    24. Johnson, Devon & Grayson, Kent, 2005. "Cognitive and affective trust in service relationships," Journal of Business Research, Elsevier, vol. 58(4), pages 500-507, April.
    25. Paul J. H. Schoemaker, 1990. "Strategy, Complexity, and Economic Rent," Management Science, INFORMS, vol. 36(10), pages 1178-1192, October.
    26. Jeffrey H Dyer & Wujin Chu, 2000. "The Determinants of Trust in Supplier-Automaker Relationships in the U.S., Japan and Korea," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(2), pages 259-285, June.
    27. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
    28. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    29. David J. Collis, 1991. "A resource‐based analysis of global competition: The case of the bearings industry," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 49-68, June.
    30. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lei Wang & Yiwen Zhao, 2023. "Will Social Network Relationship Significantly Enhance Farmers’ Participation in the Supply of Small Water-Saving Irrigation and Water Conservancy Facilities in China?," Agriculture, MDPI, vol. 13(1), pages 1-16, January.
    2. Sullivan, Diane M. & Marvel, Matthew R. & Wolfe, Marcus T., 2021. "With a little help from my friends? How learning activities and network ties impact performance for high tech startups in incubators," Technovation, Elsevier, vol. 101(C).
    3. Agnihotri, Arpita & Bhattacharya, Saurabh & Jafari-Sadeghi, Vahid, 2023. "Combatting global disruption through tertius iungens orientation of CEOs: A moderated-mediated mechanism," Journal of International Management, Elsevier, vol. 29(5).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Chun-Ju & Wu, Lei-Yu, 2012. "Team member commitments and start-up competitiveness," Journal of Business Research, Elsevier, vol. 65(5), pages 708-715.
    2. Soetanto, Danny, 2019. "Examining change in entrepreneurial networks: Using visualisation as an alternative approach," European Management Journal, Elsevier, vol. 37(2), pages 139-150.
    3. Kai-Ping Huang & Karen Wang, 2013. "The moderating effect of social capital and environmental dynamism on the link between entrepreneurial orientation and resource acquisition," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(3), pages 1617-1628, April.
    4. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.
    5. Smith, Delmonize A. & Lohrke, Franz T., 2008. "Entrepreneurial network development: Trusting in the process," Journal of Business Research, Elsevier, vol. 61(4), pages 315-322, April.
    6. Chwo-Ming Joseph Yu & Tsai-Ju Liao, 2008. "The impact of governance mechanisms on transaction-specific investments in supplier-manufacturer relationships: A comparison of local and foreign manufacturers," Management International Review, Springer, vol. 48(1), pages 95-114, February.
    7. Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    8. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    9. Wu, Lei-Yu, 2010. "Applicability of the resource-based and dynamic-capability views under environmental volatility," Journal of Business Research, Elsevier, vol. 63(1), pages 27-31, January.
    10. Wu, Lei-Yu, 2007. "Entrepreneurial resources, dynamic capabilities and start-up performance of Taiwan's high-tech firms," Journal of Business Research, Elsevier, vol. 60(5), pages 549-555, May.
    11. Roland Bel, 2018. "A property rights theory of competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1678-1703, June.
    12. Montserrat Boronat-Navarro & Alexandra García-Joerger, 2019. "Ambidexterity, Alliances and Environmental Management System Adoption in Spanish Hotels," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    13. Jack, Sarah L., 2010. "Approaches to studying networks: Implications and outcomes," Journal of Business Venturing, Elsevier, vol. 25(1), pages 120-137, January.
    14. Jean–Luc Arregle & Bat Batjargal & Michael A. Hitt & Justin W. Webb & Toyah Miller & Anne S. Tsui, 2015. "Family Ties in Entrepreneurs’ Social Networks and New Venture Growth," Entrepreneurship Theory and Practice, , vol. 39(2), pages 313-344, March.
    15. Jensen, Peter D. Ørberg, 2012. "A passage to India: A dual case study of activities, processes and resources in offshore outsourcing of advanced services," Journal of World Business, Elsevier, vol. 47(2), pages 311-326.
    16. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    17. Magnani, Giovanna & Zucchella, Antonella & Strange, Roger, 2019. "The dynamics of outsourcing relationships in global value chains: Perspectives from MNEs and their suppliers," Journal of Business Research, Elsevier, vol. 103(C), pages 581-595.
    18. Goumagias, Nikolaos & Fernandes, Kiran Jude & Nucciarelli, Alberto & Li, Feng, 2022. "How to overcome path dependency through resource reconfiguration," Journal of Business Research, Elsevier, vol. 145(C), pages 78-91.
    19. Kazeminia, Ali, 2021. "Unfolding the airbus’ strategic growth: A successful case," Scandinavian Journal of Management, Elsevier, vol. 37(1).
    20. Castaner, X. & Mulotte, L. & Garrette, B. & Dussauge, P., 2013. "Governance mode vs. governance fit? : Performance implications of make-or-ally choices for product innovation in the worldwide aircraft industry, 1942-2000," Other publications TiSEM a5741dc4-b632-4fae-9632-8, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:32:y:2008:i:3:p:529-549. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.