AN INTEGRATIVE MODEL FOR THE DEVELOPMENT OF EMERGING TECHNOLOGY COMPLEX

The term emerging technology complex (ETC) is associated with companies that wish to diversify into a technology related business by setting up a new venture in parallel with their existing core business. ETC strategy has been widely adopted by many traditional companies due to the advance of technology and the changing market environment, but its resulting performance varies depending largely on how it is operated, i.e. the internal factors. This study explored which of these internal factors are important in affecting the development and growth of ETCs. Four companies with ETC setup were selected for the study; two were more successful while two were less successful. In-depth semi-structured interviews were conducted. The findings indicate that the success of ETC is due to internal co-operation in an entrepreneurial environment and the implementation of an organic organisational form. A development model for successful ETC is recommended in the conclusion of the paper.