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Business and Technology Strategies and New Venture Performance: A Study of the Telecommunications Equipment Industry


  • Michael J. Dowling

    (Department of Management, Terry College of Business, University of Georgia, Athens, Georgia 30602)

  • Jeffrey E. McGee

    (Management Department, College of Business Administration, University of Nebraska at Omaha, Omaha, Nebraska 68182)


In this paper, a set of hypotheses relating competitive and cooperative business strategies and technology strategies to new venture performance are developed. These hypotheses are tested using data collected from the Initial Public Offering (IPO) documents of a sample of 52 new ventures in the telecommunications equipment industry. This industry has experienced a great deal of technological change as computer and telephone technologies have merged allowing a variety of new ventures to successfully enter the industry. The results suggest that new ventures pursuing broad cost leadership strategies were more successful. Investments in innovation in terms of relative R&D expenditures were also related to higher performance. Finally, significant interaction effects between investments in innovation and competitive strategies and performance were found.

Suggested Citation

  • Michael J. Dowling & Jeffrey E. McGee, 1994. "Business and Technology Strategies and New Venture Performance: A Study of the Telecommunications Equipment Industry," Management Science, INFORMS, vol. 40(12), pages 1663-1677, December.
  • Handle: RePEc:inm:ormnsc:v:40:y:1994:i:12:p:1663-1677
    DOI: 10.1287/mnsc.40.12.1663

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    Cited by:

    1. Gupta, A. & Chen, I. J. & Chiang, D., 1997. "Determining organizational structure choices in advanced manufacturing technology management," Omega, Elsevier, vol. 25(5), pages 511-521, October.
    2. Yunshi Liu & Yi-Jung Chen & Linda C. Wang, 2017. "Family business, innovation and organizational slack in Taiwan," Asia Pacific Journal of Management, Springer, vol. 34(1), pages 193-213, March.
    3. Daniel Tarka & Kanes Rajah, 2005. "Management team and technology strategy for success of high- growth SMEs," Microeconomics 0506003, University Library of Munich, Germany.
    4. Wang-Jin Yoo & Hyun Ho Choo & Sang Jin Lee, 2018. "A Study on the Sustainable Growth of SMEs: The Mediating Role of Organizational Metacognition," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-17, August.
    5. Tsai, Ming-Tien & Li, Yong-Hui, 2007. "Knowledge creation process in new venture strategy and performance," Journal of Business Research, Elsevier, vol. 60(4), pages 371-381, April.
    6. Liu, John & Yao, Dongqing, 1999. "Strategic options in re-engineering of a manufacturing system with uncertain completion time," European Journal of Operational Research, Elsevier, vol. 115(1), pages 47-58, May.
    7. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    8. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    9. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    10. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2012. "Towards a comprehensive model of entry timing in the ICT industry: Direct and indirect effects," Journal of World Business, Elsevier, vol. 47(2), pages 297-310.
    11. Yasemin Y. Kor, 2003. "Experience-Based Top Management Team Competence and Sustained Growth," Organization Science, INFORMS, vol. 14(6), pages 707-719, December.
    12. José Pedro Carreón-Gutiérrez & José Manuel Saiz-Álvarez, 2019. "Product Newness, Low Competition, Recent Technology, and Export Orientation as Predictors for Entrepreneurial Growth Aspirations," Sustainability, MDPI, Open Access Journal, vol. 11(20), pages 1-20, October.


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