The Effect of Internationalisation on the Rate of Growth of High-Tech Start-Ups: Evidence for the UK and Germany

Bürgel, Oliver; Fier, Andreas; Licht, Georg; Murray, Gordon

doi:10.1007/978-3-642-57467-2_6

Cited by 4 publications

(7 citation statements)

References 16 publications

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“…Some studies have shown that VC funded firms have a higher cash flow and sales growth (e.g., Jain and Kini, 1995). However, other studies do not find any significant effect of VC financing on firms' sales and employment growth (e.g., Buergel et al, 2002).…”

Section: Control Variablesmentioning

confidence: 96%

Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities

Haeussler

Patzelt

Zahra

2012

Journal of Business Venturing

176

154

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High technology new firms have extensively used strategic alliances to gain access to knowledge, resources and capabilities. However, given their inexperience and limited resources, these firms are vulnerable to their more established partners' potential opportunism. This raises the question: How can new firms maximize the benefits of these alliances while reducing their risks? In this study, we address this question by drawing upon the capabilities perspective to propose that the impact of upstream, horizontal, and downstream alliances on product development depends on the degree of specialization of new firms' technological capabilities. Using a database of biotechnology firms, the results support this argument even when different types of strategic alliances are considered.

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Section: Control Variablesmentioning

confidence: 96%

Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities

Haeussler

Patzelt

Zahra

2012

Journal of Business Venturing

176

154

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“…Besides assessing the existence of the product's lifecycle, the tenure of the last product also proxy for other properties of the product that affect consumers' preferences and valuation: degree of newness, latest design, prestige or good reputation, product quality (Burgel et al, 2002;Schott, 2004;Bernard et al, 2010;Moral and Jaumandreu, 2007). Also, product tenure can account for heterogeneous attributes of products in terms of technological and economic value, which would otherwise be obfuscated under the mere count of (potentially) highly differentiated new products (Tether, 1998;Loof and Heshmati, 2006;Schott 2004;Moral and Jaumandreu, 2007).…”

Section: Product Age and Product Innovationmentioning

confidence: 99%

“…Controlling for the tenure of the last product is also useful to take into consideration the degree of newness and complexity of the product portfolio (Cefis and Marsili, 2011;Loof and Heshmati, 2006). Some new products are characterised by short product lifecycles, as in the case of market-driven innovations that are required by the market (Barlet et al, 2000), or innovations in hightech industries, where old products signal out-of-date and superseded designs (Klepper, 1996;Burgel et al, 2002;Gopalakrishnan and Bierly, 2006). On the contrary, very innovative products may be accepted by the market at a slow pace (Barlet et al, 2000), thus making the product's lifecycle curve longer and shifted rightwards, with a startup phase abnormally extended, and a growth phase delayed in time.…”

Section: Product Age and Product Innovationmentioning

confidence: 99%

Firm age and the probability of product innovation. Do CEO tenure and product tenure matter?

Cucculelli

2017

J Evol Econ

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This paper examines the influence that the age of a firm has on the probability of product innovation by taking into account two factors: the role of the CEO's tenure and the lifecycle of the last product introduced. In a sample of Italian manufacturing firms (n = 2,163), analysis reveals that the new entrants' high innovative activity is mainly driven by the new CEO's innovation propensity, which is strictly dependent on his tenure. Likewise, the lower innovation activity observed in mature firms is mostly explained by the dynamics of the product's lifecycle and the CEO's tenure. More generally, the existence of a negative relationship between innovation and firm age is questioned, as controlling for time-related variables that overlap during the company's lifecycle -product age and CEO's tenure -turns the relationship positive. Finally, the innovative behaviour of incumbent companies turns out to be dependent on the renewal abilities of newly appointed external CEOs, whereas, CEOs from within the family play a minor role.

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“…We used total compensation expense to control for varying degrees of labor intensiveness v. capital intensiveness across both firm and industry settings. We included the firm's international sales since internationalization has been shown to be a predictor of sales growth in small and/or privately held firms (Bloodgood, Sapienza, and Almedia 1996;Burgel, Fier, Licht, and Murray 2000). For industry-level effects, we used R&D expense and sales and marketing expense to control for the relative importance of basic research and promotional intensity across industries (Dowling and McGee 1994;Mizik and Jacobson 2003).…”

Section: Methodsmentioning

confidence: 99%

Employee equity, incentive compensation, and growth in entrepreneurial firms

Arbaugh

Cox²,

Camp³

2004

New England Journal of Entrepreneurship

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W e examined the relationship between employee equity compensation, incentive compensation, and firm growth using a sample of 480 privately held firms from the Ewing Marion Kauffman Foundation's database of Ernst & Young Entrepreneur Of The Year (EOY) winners. Using frameworks from agency and motivation theories, we argued that larger percentages of both equity-and incentivebased compensation allocated to top managers and employees would be associated with firm growth. After controlling for firm and industry effects, the results of the study showed that while the firms in the sample preferred providing incentive compensation, providing equity compensation for employees was a positively significant predictor of firm growth over a three-year period. These findings suggest that prescriptions for growth in larger firms developed from agency theory also may be applicable to entrepreneurial firms, and founder/CEOs seeking to grow their firms should consider using equity compensation to motivate their current employees and to attract new ones.

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The Effect of Internationalisation on the Rate of Growth of High-Tech Start-Ups: Evidence for the UK and Germany

Cited by 4 publications

References 16 publications

Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities

Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities

Firm age and the probability of product innovation. Do CEO tenure and product tenure matter?

Employee equity, incentive compensation, and growth in entrepreneurial firms

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