Contingency Factors and the Technology-Performance-Relationship in Start-ups
This study identifies the pace of technological development and market heterogeneity as crucial environmental conditions shaping start-ups’ performance when commercializing radical technologies. Using a unique dataset that combines survey and patent data for 85 technology-based start-ups, we found that technological radicalness has a positive effect on performance when the development pace in a start-up’s technological field is high. Contrarily, under heterogeneous market conditions, technological radicalness diminishes a start-up’s performance. The results emphasize that the impact of technological radicalness on start-ups’ performance is context specific. Overall, these findings contribute to a better understanding of when technological radicalness represents an asset or a liability for technology-based startups.
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