IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v23y2019i06ns136391961950052x.html
   My bibliography  Save this article

The Evolution Of Business Relationships Between Technology-Intensive New Ventures And Incumbents During The New Product Development Process

Author

Listed:
  • MOHAMMAD ALI BAHREINI ZARJ

    (Faculty of Entrepreneurship, University of Tehran, 16 St., North Kargar Ave., Tehran, Iran)

  • ALI MOBINI DEHKORDI

    (Faculty of Entrepreneurship, University of Tehran, 16 St., North Kargar Ave., Tehran, Iran)

  • NIMA HEIRATI

    (#x2020;School of Business and Management, Queen Mary University of London, Bancroft Building, Mile End Road, London, E1 4NS, United Kingdom)

  • MOHAMMAD REZA MEIGOUNPOORY

    (Faculty of Entrepreneurship, University of Tehran, 16 St., North Kargar Ave., Tehran, Iran)

Abstract

This study investigates how technology-intensive new ventures shape and manage their relationships with incumbents to successfully develop new products. We undertake the dynamic views of business relationship to reveal under what conditions new ventures should emphasises more on transactional contract or alliance approach to develop their relationships with incumbents. Using longitudinal multiple case analysis, we show that transactional contract is less effective during discovery and development stages to facilitate knowledge share and collaborative learning between new ventures and incumbents. However, adopting transactional contract is essential during commercialisation to strengthen the relationship, minimise the drawbacks of social bonds, and motivate both parties to engage in new projects. The results show that tensions between exchange partners are likely to increase when the incumbent is flexible to re-negotiate and share the fair benefits during the commercialisation stage. Our findings provide new insights about the evolution of new ventures’ relationships with incumbents across NPD stages.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:ijimxx:v:23:y:2019:i:06:n:s136391961950052x
    DOI: 10.1142/S136391961950052X
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S136391961950052X
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S136391961950052X?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rothaermel, Frank T. & Thursby, Marie, 2007. "The nanotech versus the biotech revolution: Sources of productivity in incumbent firm research," Research Policy, Elsevier, vol. 36(6), pages 832-849, July.
    2. Corine Genet & Khalid Errabi & Caroline Gauthier, 2012. "Which Model of Technology Transfer for Nanotechnology? A Comparison with Biotech and Microelectronics," Grenoble Ecole de Management (Post-Print) hal-00749152, HAL.
    3. Fischer, Eileen & Reuber, A. Rebecca, 2004. "Contextual antecedents and consequences of relationships between young firms and distinct types of dominant exchange partners," Journal of Business Venturing, Elsevier, vol. 19(5), pages 681-706, September.
    4. Ansari, Shahzad (Shaz) & Krop, Pieter, 2012. "Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics," Research Policy, Elsevier, vol. 41(8), pages 1357-1374.
    5. Marion, Tucker J. & Eddleston, Kimberly A. & Friar, John H. & Deeds, David, 2015. "The evolution of interorganizational relationships in emerging ventures: An ethnographic study within the new product development process," Journal of Business Venturing, Elsevier, vol. 30(1), pages 167-184.
    6. Vincent Mangematin & Steve Walsh, 2012. "The Future Of Nanotechnologies," Grenoble Ecole de Management (Post-Print) hal-00658034, HAL.
    7. Robert M. Grant & Charles Baden‐Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    8. John Hagedoorn & Geerte Hesen, 2007. "Contract Law and the Governance of Inter‐Firm Technology Partnerships – An Analysis of Different Modes of Partnering and Their Contractual Implications," Journal of Management Studies, Wiley Blackwell, vol. 44(3), pages 342-366, May.
    9. Haeussler, Carolin & Patzelt, Holger & Zahra, Shaker A., 2012. "Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities," Journal of Business Venturing, Elsevier, vol. 27(2), pages 217-233.
    10. 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.
    11. Vincent Mangematin & Steve Walsh, 2012. "The Future Of Nanotechnologies," Post-Print hal-00658034, HAL.
    12. Claudio Panico, 2017. "Strategic interaction in alliances," Strategic Management Journal, Wiley Blackwell, vol. 38(8), pages 1646-1667, August.
    13. Nikulainen, Tuomo, 2007. "Identifying Nanotechnological Linkages in the Finnish Economy - An Explorative Study," Discussion Papers 1101, The Research Institute of the Finnish Economy.
    Full references (including those not matched with items on IDEAS)

    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. Doran, Justin & Ryan, Geraldine, 2019. "Does nanotechnology research generate an innovation premium over other types of research? Evidence from Ireland," Technology in Society, Elsevier, vol. 59(C).
    2. Elena M. Tur & Evangelos Bourelos & Maureen McKelvey, 2022. "The case of sleeping beauties in nanotechnology: a study of potential breakthrough inventions in emerging technologies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 683-708, December.
    3. Stucki, Tobias & Woerter, Martin, 2019. "The private returns to knowledge: A comparison of ICT, biotechnologies, nanotechnologies, and green technologies," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 62-81.
    4. Munari, Federico & Toschi, Laura, 2014. "Running ahead in the nanotechnology gold rush. Strategic patenting in emerging technologies," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 194-207.
    5. Massaro, Sebastiano & Lorenzoni, Gianni, 2021. "Nanomedicine: a socio-technical system," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    6. Coccia, Mario & Wang, Lili, 2015. "Path-breaking directions of nanotechnology-based chemotherapy and molecular cancer therapy," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 155-169.
    7. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    8. 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).
    9. Guan, Jiancheng & Liu, Na, 2015. "Invention profiles and uneven growth in the field of emerging nano-energy," Energy Policy, Elsevier, vol. 76(C), pages 146-157.
    10. Donna Kidwell, 2014. "Navigating the role of the principal investigator: a comparison of four cases," The Journal of Technology Transfer, Springer, vol. 39(1), pages 33-51, February.
    11. Ratinho, Tiago & Harms, Rainer & Walsh, Steven, 2015. "Structuring the Technology Entrepreneurship publication landscape: Making sense out of chaos," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 168-175.
    12. Nikulainen, Tuomo & Kulvik, Martti, 2009. "How General Are General Purpose Technologies? Evidence from nano-, bio- and ICT-technologies in Finland," Discussion Papers 1208, The Research Institute of the Finnish Economy.
    13. Raul Gouvea & Jonathan Linton & Manuel Montoya & Steven Walsh, 2012. "Emerging Technologies and Ethics: A Race-to-the-Bottom or the Top?," Journal of Business Ethics, Springer, vol. 109(4), pages 553-567, September.
    14. Ozcan, Sercan & Islam, Nazrul, 2014. "Collaborative networks and technology clusters — The case of nanowire," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 115-131.
    15. Matthieu Mandard, 2013. "Profiting from collaborative innovation: R&D alliances and technological assets protection mechanisms [Profiter de l'innovation collaborative : alliances de R&D et mécanismes de protection des acti," Post-Print halshs-00846071, HAL.
    16. Cottier, Thomas & Jost, Dannie, 2012. "Broad Concerns about Nanotechnology Patents: Symptoms and Diagnosis," Papers 408, World Trade Institute.
    17. Zahoor, Nadia & Khan, Zaheer & Wu, Jie & Tarba, Shlomo Y. & Donbesuur, Francis & Khan, Huda, 2023. "Vertical alliances and innovation: A systematic review of the literature and a future research agenda," Technovation, Elsevier, vol. 122(C).
    18. Coulibaly, Salifou K. & Erbao, Cao & Metuge Mekongcho, T., 2018. "Economic globalization, entrepreneurship, and development," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 271-280.
    19. Liu, Na & Guan, JianCheng, 2016. "Policy and innovation: Nanoenergy technology in the USA and China," Energy Policy, Elsevier, vol. 91(C), pages 220-232.
    20. Soh, Pek-Hooi & Subramanian, Annapoornima M., 2014. "When do firms benefit from university–industry R&D collaborations? The implications of firm R&D focus on scientific research and technological recombination," Journal of Business Venturing, Elsevier, vol. 29(6), pages 807-821.

    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:wsi:ijimxx:v:23:y:2019:i:06:n:s136391961950052x. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    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.