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How Technology–Based New Firms Leverage Newness and Smallness to Commercialize Disruptive Technologies

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  • Sofy Carayannopoulos

Abstract

Although the survival of young firms is challenged by the liabilities of newness, there are numerous instances where these firms have been successful at commercializing disruptive technologies at the expense of much larger and stronger incumbents. This paper explores this phenomenon and argues that the characteristics that challenge young technology–venture survival are also potential sources of advantage when commercializing disruptive technologies. The propositions developed also identify the boundary conditions for the advantages by examining the context of commercialization that is created by four types of disruptive technologies. The contributions of this paper are relevant to the enhanced understanding of the liabilities of newness, as well as the commercialization of disruptive technologies.

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  • Sofy Carayannopoulos, 2009. "How Technology–Based New Firms Leverage Newness and Smallness to Commercialize Disruptive Technologies," Entrepreneurship Theory and Practice, , vol. 33(2), pages 419-438, March.
    • Handle: RePEc:sae:entthe:v:33:y:2009:i:2:p:419-438
    DOI: 10.1111/j.1540-6520.2009.00297.x
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    4. Amir Emami & Dimo Dimov, 2017. "Degree of innovation and the entrepreneurs’ intention to create value: a comparative study of experienced and novice entrepreneurs," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(2), pages 161-182, August.
    5. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    6. Donbesuur, Francis & Boso, Nathaniel & Hultman, Magnus, 2020. "The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions," Journal of Business Research, Elsevier, vol. 118(C), pages 150-161.
    7. Richard Arend, 2014. "Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship," Small Business Economics, Springer, vol. 42(1), pages 33-57, January.
    8. Mohammad Ali Bahreini Zarj & Ali Mobini Dehkordi & Nima Heirati & Mohammad Reza Meigounpoory, 2019. "The Evolution Of Business Relationships Between Technology-Intensive New Ventures And Incumbents During The New Product Development Process," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-27, August.
    9. Martina Musteen & Mujtaba Ahsan, 2013. "Beyond Cost: The Role of Intellectual Capital in Offshoring and Innovation in Young Firms," Entrepreneurship Theory and Practice, , vol. 37(2), pages 421-434, March.
    10. Schmidt, Arne & Walter, Sascha G. & Walter, Achim, 2010. "Contingency Factors and the Technology-Performance-Relationship in Start-ups," EconStor Preprints 37082, ZBW - Leibniz Information Centre for Economics.
    11. Fabian Eggers & Felix Eggers & Sascha Kraus, 2016. "Entrepreneurial branding: measuring consumer preferences through choice-based conjoint analysis," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 427-444, June.
    12. Sara Parry & Paul Westhead, 2016. "Mobilizing relationship marketing to ensure venture development in a rural resource-constrained bilingual context: The case of Draig Technology Limited," Working Papers 16002, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    13. van Werven, Ruben & Bouwmeester, Onno & Cornelissen, Joep P., 2015. "The power of arguments: How entrepreneurs convince stakeholders of the legitimate distinctiveness of their ventures," Journal of Business Venturing, Elsevier, vol. 30(4), pages 616-631.
    14. Antonio, Jerome L. & Kanbach, Dominik K., 2023. "Contextual factors of disruptive innovation: A systematic review and framework," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    15. Lee Li & Gongming Qian & Zhengming Qian, 2015. "Should Small, Young Technology–Based Firms Internalize Transactions in Their Internationalization?," Entrepreneurship Theory and Practice, , vol. 39(4), pages 839-862, July.
    16. Linder, Christian, 2019. "Customer orientation and operations: The role of manufacturing capabilities in small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 216(C), pages 105-117.
    17. Goldenstein, Jan & Hunoldt, Michael & Oertel, Simon, 2019. "How optimal distinctiveness affects new ventures' failure risk: A contingency perspective," Journal of Business Venturing, Elsevier, vol. 34(3), pages 477-495.
    18. Masatoshi Kato & Koichiro Onishi & Yuji Honjo, 2017. "Does patenting always help new-firm survival?," Discussion Paper Series 159, School of Economics, Kwansei Gakuin University, revised May 2017.

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