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The Network Embeddedness of New, Technology-Based Firms: Developing a Systemic Evolution Model

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  • Yli-Renko, Helena
  • Autio, Erkko

Abstract

The present paper focuses on the interactive relationship between new, technology-based firms and their network environment. The paper analyzes the mechanisms through which new, technology-based firms become immersed in innovation and manufacturing networks. The concept of embeddedness is developed and used to depict such mechanisms. A systemic evolution model of new, technology-based firms is proposed. The model depicts the evolution of new, technology-based firms in manufacturing and innovation networks. The model emphasizes the catalyzing role of new, technology-based firms in national systems of innovation. Network embeddedness is empirically explored in five case studies of Finnish new, technology-based firms. The systemic evolution model serves as an interpretative scheme for the case studies. The analysis of the organic relationship between new, technology-based firms and their systemic environment also serves to reveal the implications of embeddedness for new, technology-based firms. Copyright 1998 by Kluwer Academic Publishers

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  • Yli-Renko, Helena & Autio, Erkko, 1998. "The Network Embeddedness of New, Technology-Based Firms: Developing a Systemic Evolution Model," Small Business Economics, Springer, vol. 11(3), pages 253-267, November.
  • Handle: RePEc:kap:sbusec:v:11:y:1998:i:3:p:253-67
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    Cited by:

    1. Braunerhjelm, Pontus, 2005. "Madonna and the Music Miracle The genesis and evolution of a globally competitive cluster," Working Paper Series in Economics and Institutions of Innovation 29, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Pontus Braunerhjelm, 2008. "Specialization of Regions and Universities: The New Versus the Old," Industry and Innovation, Taylor & Francis Journals, vol. 15(3), pages 253-275.
    3. Olga Dziubaniuk, 2016. "Ethical responsibilities of R&D organizations: networking business and society," Proceedings of Business and Management Conferences 3406018, International Institute of Social and Economic Sciences.
    4. Dina Cunha & Sandra T. Silva & Aurora A.C. Teixeira, 2013. "Are Academic Spin-Offs necessarily New Technology-Based firms?," FEP Working Papers 482, Universidade do Porto, Faculdade de Economia do Porto.
    5. Jack, Sarah L., 2010. "Approaches to studying networks: Implications and outcomes," Journal of Business Venturing, Elsevier, vol. 25(1), pages 120-137, January.
    6. Yagüe-Perales, R.M. & March-Chorda, I., 2013. "Performance analysis of NTBFs in knowledge-intensive industries: Evidence from the human health sector," Journal of Business Research, Elsevier, vol. 66(10), pages 1983-1989.
    7. Braunerhjelm, Pontus, 2006. "Regional Specialization and Universities: The New Verus the Old," Working Paper Series in Economics and Institutions of Innovation 55, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    8. Barthelemy Chollet & Mickaël Géraudel & Caroline Mothe, 2013. "Generating Business Referrals for SMEs: The Contingent Value of CEOs' Social Capital," Grenoble Ecole de Management (Post-Print) hal-00915173, HAL.

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