This paper reports the results of a two-phase study that explores new venture creation within the context of an entrepreneurial system. First, a genealogy of hightechnology companies is presented depicting a high spin-off rate resulting from the presence of seven incubator organizations. Second, semantic structure analysis (Spradley 1980) based on semi-structured interviews with founders is used to develop a taxonomy. This taxonomy depicts the relationship among components in one entrepreneurial system, Boulder County, Colorado, that encourages, supports, and enhances regional entrepreneurial activity. Findings indicate that incubator organizations, spin-offs, informal and formal networks, the physical infrastructure, and the culture of the region are related uniquely and interact to form a system conducive for dense high-technology entrepreneurial activity. Additionally, greater rates of new venture formation were found following critical moments in the life of incubator organizations.
We all sense that the changes surrounding us are not mere trend but the workings of large, unruly forces: the spread of information technology and computer networks; the dismantling of hierarchy, the structure that has essentially organized work since the mid-19th century. Growing up around these is a new information age economy, whose fundamental sources of wealth are knowledge and communication rather than natural resources and labor (Stewart, 1993, p. 66).Many organizations are experimenting with structures (new organization forms) that are designed to facilitate empowered cross-functional communication. The challenge is to become more efficient or competitive by reducing barriers to communication and to eliminate boundaries which impede the understanding of end-to-end workflows and better performance on strategic goals. Horizontal organization processes such as cross-functional teamwork and empowered decision making at lower organization levels are based on more participative management styles (new management technologies). This paper builds a theoretical model and provides propositions showing how knowledge creation and communication are the foundations of the new organization forms. An organization's capability for creating and communicating knowledge is seen as a resource which can create global strategic competitive advantage. A longitudinal research program is proposed to study the progress of experiments by organizations utilizing the new organization forms and management technologies (NFMT).
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