Positioning strategies and prospects for success of emerging high-technology firms: The case of United States biotechnology
This study deals with strategy-performance relationships in emerging high-technology firms in the environment that follows a technological discontinuity. The focus is on the relative contribution of positioning strategies to the strength of position for future success in newly created firms in the emergent stage of biotechnology. The research is based on a sample of 80 new U.S. biotechnology firms created between 1971 and 1984. Our approach follows an asset-based view of the firm. Our interest is on strategic choices related to long-term accumulation of assets. We focused on the strategic problem of building a competitive position in the environment of an emerging technology, and looked at decisions about where to build core assets along the innovation chain (research, development, manufacturing and marketing), how to do so (internally or through external collaboration) and timing of these choices. The models examined relate positioning choices to prospects for success. All models are highly significant (p $<$ 0.001). Adjusted R$\sp2$ go from 0.35 to 0.48. The concept of prospects for success of emerging firms, assessed in mid 1990 by a panel of 20 experts, presents a reliability index above 0.90. The results show that positioning strategy is a relevant determinant of the strength of a firm's position for future success. The three distinct operational definitions of positioning strategy (isolated strategic choices, patterns of strategic choice over time, and combinations of strategy patterns and technology/market domains) present some significant relationships with performance. Other relevant factors are timing of entry into the biotechnology field, initial firm financing, time span, access to capital markets and the technology/market domain targeted by a firm. This study suggests that emerging high-technology firms do adapt and changes in core assets are related to stronger strategic positions. It implies that strategy does make a difference in emerging firm performance. Also, timing of strategic choice (not just content) is an important factor in the rapidly changing environment of an emerging technology.
Year of publication: |
1991-01-01
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Authors: | Vila, Joaquim |
Publisher: |
ScholarlyCommons |
Saved in:
freely available
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