This study examines the business networks and localization effects for new technology-based firms (NTBFs) in the context of innovation performance (the number of patents and product differentiation). In this regard, the study includes 28 variables. A survey was conducted in 2016 with 401 Swedish NTBFs that were small and young (the employment mean was 1.80 and the average age of each firm was 28.3 months). The biggest category of NTBFs was knowledge-intensive high-technology services, followed by medium high-technology manufacturing, and high-technology manufacturing. Hypotheses on how business networks and localization are related to innovation performance were tested using principal component analysis, correlation analysis, and regression analysis. The results show that the primary significant factor for innovation performance regarding business networks and localization dimensions are professional network services, while industrial and regional areas also have a positive relationship on product differentiation. Our study also shows that innovation performance enhances firms' abilities to access external financing through professional network services (e.g., venture capital companies).

This study examines the effects of new technology-based firms (NTBFs) internal and external resources on their early business performance. Based on a large unique dataset of 401 newly started NTBFs, we find that founders’ business experience and their firms’ proximity to other firms positively affect early business performance. Growth orientation is found to be negatively related to business performance, which might suggest a certain level of over-optimism among entrepreneurs with aspiration to grow fast.

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This paper examines the roles of external stakeholders in the business model development of new technology-based firms (NTBFs) from the perspective of the founders. Based on a longitudinal study of two Swedish NTBFs, semi-structured interviews, including timeline mapping, were conducted with the founders of each firm over a period of two years, drawing on retrospective data from the first year of founding. The findings reveal that stakeholder interaction is first initiated based on the position the stakeholder has in relation to the firm, whereas what tasks the stakeholder perform in relation to NTBF resource needs has greater consequences for the business model development. The roles of stakeholders further help shape founder perceptions of how to do business, although such influence may be limited over time. The results provide valuable insight into the influence of founders’ perceptions and firms’ business networks on the business configuration of NTBFs, revealing that business model development is both endogenous and exogenous. Specifically, the study provides some original insights around which roles stakeholders play in the early development of the business model and why these roles are necessary at certain points in time.

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