The centrality of organisational factors in the growth of new technology-based firms

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Caroline Tarillon
Keyword(s):  
New Technology ◽  
Growth Dynamics ◽  
Probit Model ◽  
Governance Structure ◽  
Growth Trajectories ◽  
Content Type ◽  
Explanatory Factors ◽  
New Technology Based Firms ◽  
Internal Stakeholders ◽  
Organisational Factors

PurposeNew technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is observed yet many of them remain small. A better understanding of these trajectories is thus necessary. The purpose of this paper is to explore the influence of individual and organisational factors on 253 growth trajectories of NTBFs.Design/methodology/approachThe authors use a Heckman ordered probit model to study explanatory factors of growth trajectories in NTBFs created between 1999 and 2012. This method allows them to study the determinants of the presence of a growth dynamics at the same time as the determinants of growth intensity.FindingsThe model shows that entrepreneurs play a weak role in understanding the growth trajectories of their company. Rather, it is organisational factors – such as the level of innovation and the governance structure – that explain initiation of a growth trajectory and the intensity of the growth.Originality/valueBy using an original methodology, the authors highlight the importance of organisational factors and encourage entrepreneurs to develop a governance structure focused on internal stakeholders to support growth.

scholarly journals Japanese government venture capital: what should we know?

2018 ◽  
Vol 12 (1) ◽  
pp. 14-31 ◽  
Author(s):  
Tetsuya Kirihata
Keyword(s):  
Venture Capital ◽  
New Technology ◽  
Japanese Government ◽  
Future Research ◽  
Content Type ◽  
Academic Literature ◽  
Current State ◽  
New Technology Based Firms ◽  
Research Questions

Purpose The purpose of this paper is to discuss the implication of Japanese government venture capital (VC) policies for future research and to provide basis for policymakers and practitioners. Design/methodology/approach This is an academic literature review of available peer-reviewed publications on government VC policies. This paper discusses and analyses the current state and issues of the Japanese government VC policies regarding three research questions: What do Japanese government VCs do? Do they contribute to their portfolios? and Do they contribute to the development of VC market? Findings There are mainly two findings in this paper: It is effective to establish a complementary relationship with private VCs for Japanese government VCs to contribute to their portfolios; Japanese government should simultaneously continue to make and review policies for the VC market, the stock market, the entrepreneur sector and the environment surrounding them by its strategic long-term commitment to contribute to the development of VC market and new technology-based firms in Japan. Originality/value As there are only a few studies on recently strengthened Japanese government VC policies, this paper provides an in-depth discussion on these Japanese VC policies, which can be used for future research and as a valuable resource for policymakers and practitioners.

Organisational capabilities and the long-term survival of new technology-based firms

2016 ◽  
Vol 28 (3) ◽  
pp. 312-332 ◽  
Author(s):  
Hans Löfsten
Keyword(s):  
Logistic Regression ◽  
Regression Model ◽  
Logistic Regression Model ◽  
New Technology ◽  
Firm Survival ◽  
Term Survival ◽  
Content Type ◽  
Organisational Capabilities ◽  
New Technology Based Firms

Purpose This study aims to analyse organisational capabilities among new technology-based firms (NTBFs) and examine how these capabilities are linked to the firms’ long-term survival. Design/methodology/approach The study leverages a data set of 131 NTBFs located at 16 incubators in Sweden. The first part of the analysis seeks suitable organisational capabilities as determinants of firm survival. The second part is a statistical analysis. The organisational capabilities comprise six variables concerning business experience, financing and international markets. Findings The study comprises two data collections, with the first data collection being conducted in 2005, and the second in 2014. The survival rate for these firms was 55 per cent according to their respective annual reports in 2013. First, this study showed that the logistic regression model that included the three organisational capabilities is significant. Second, one variable is significant at the variable level: business experience. In addition, the control variable firm size is also significant. Originality/value Further empirical research in this area is required as the current research on organisational capabilities is quite limited and mainly conceptual in nature. Very few related studies focus on NTBFs and their survival. This study demonstrates a significant logistic regression model to determine links between organisational capabilities and firm survival.

Business and innovation resources

2016 ◽  
Vol 54 (1) ◽  
pp. 88-106 ◽  
Author(s):  
Hans Löfsten
Keyword(s):  
Latent Variables ◽  
Design Methodology ◽  
Longitudinal Research ◽  
New Technology ◽  
Firm Survival ◽  
Annual Reports ◽  
Data Set ◽  
Content Type ◽  
Business Plans ◽  
New Technology Based Firms

Purpose – The purpose of this paper is to analyze how new technology-based firms’ (NTBF) business and innovation resources affect firm survival. Design/methodology/approach – The study leverages a data set comprised of 131 Swedish NTBFs located in 16 incubators. The first part of the analysis investigates the determinants of firm survival, and the second presents a statistical analysis. The business resources examined in this study consist of business planning and localization variables and four latent variables are developed. Patents at the firm start or during the firm’s first three years are considered as innovation resources. Findings – First, this study shows that the latent business plans variable has a significant positive connection with firm survival. Second, patent development during firms’ initial years is critical to firm survival. Originality/value – This study is longitudinal, with the first data collection occurring in 2005 and the second in 2014. The firms’ 2013 annual reports suggest that the firms’ survival rate is 55 percent. This longitudinal research that spans eight years shows how the development of patents is highly significant to firm survival.

Competence at technology entrepreneurship: an interpretive view

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Sadegh Baradaran ◽  
Jahangir Yadollahi Farsi ◽  
Seyed Reza Hejazi ◽  
Morteza Akbari
Keyword(s):  
Design Methodology ◽  
New Technology ◽  
Technology Entrepreneurship ◽  
Field Of Study ◽  
Content Type ◽  
Business Creation ◽  
New Technology Based Firms ◽  
Empirical Material

PurposeTechnology entrepreneur' competence is one of the main domains of study in the field of technology entrepreneurship. In the dominant rationalistic view, competence is seen as constituted by a set of components used in performing particular functions. This study aims to expand this field of study by using an interpretive view.Design/methodology/approachPhenomenology is proposed and explored as an interpretive methodology that is more compatible with technology entrepreneurship. The empirical material is based on interviews with 19 technology entrepreneurs who have established new technology-based firms in Iran.FindingsFindings show that the nature of the technology entrepreneurship's competence is emergent, holistic and relational. Also, the entrepreneurs' perception of entrepreneurship specifies which competence's components they develop and what meaning these components take.Originality/valueBy examining how technology entrepreneurs experience competence in the context of business creation, this study moves beyond the lists or categories of competencies, and it contributes to a broader understanding of competence at technology entrepreneurship.

scholarly journals Beyond agency and stewardship theory: shareholder–manager relationships and governance structures in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ann Sophie K. Löhde ◽  
Giovanna Campopiano ◽  
Andrea Calabrò
Keyword(s):  
Social Exchange ◽  
Family Business ◽  
Social Exchange Theory ◽  
Family Firms ◽  
Governance Structure ◽  
Managerial Behavior ◽  
Exchange System ◽  
Content Type ◽  
The One ◽  
Over Time

PurposeChallenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial behavior and change in governance structure.Design/methodology/approachStemming from social exchange theory and building on the 4C model proposed by Miller and Le Breton-Miller (2005), we consider the evolving owner–manager relationship in four main configurations. On the one hand, we account for family businesses shifting from a generalized to a restricted exchange system, and vice versa, according to whether a family manager misbehaves in a stewardship-oriented governance structure or a nonfamily manager succeeds in building a trusting relationship in an agency-oriented governance structure. On the other hand, we consider that family firms will strengthen a generalized exchange system, rather than a restricted one, according to whether a family manager contributes to the stewardship-oriented culture in the business or a nonfamily manager proves to be driven by extrinsic rewards. Four scenarios are analyzed in terms of the managerial behavior and governance structure that characterize the phases of the relationship between owners and managers.FindingsVarious factors trigger managerial behavior, making the firm deviate from or further build on what is assumed by stewardship and agency theories (i.e. proorganizational versus opportunistic behavior, respectively), which determine the governance structure over time. Workplace deviance, asymmetric altruism and patriarchy on the one hand, and proorganizational behavior, relationship building and long-term commitment on the other, are found to determine how the manager behaves and thus characterize the owner's reactions in terms of governance mechanisms. This enables us to present a dynamic view of governance structures, which adapt to the actual attitudes and behaviors of employed managers.Research limitations/implicationsAs time is a relevant dimension affecting individual behavior and triggering change in an organization, one must consider family business governance as being dynamic in nature. Moreover, it is not family membership that determines the most appropriate governance structure but the owner–manager relationship that evolves over time, thus contributing to the 4C model.Originality/valueThe proposed model integrates social exchange theory and the 4C model to predict changes in governance structure, as summarized in the final framework we propose.

Do the heterogeneous determinants of life satisfaction affect differently across borrowers of diverse credit sources? A propensity score approach

2018 ◽  
Vol 45 (8) ◽  
pp. 1142-1158 ◽  
Author(s):  
Tiken Das ◽  
Manesh Choubey
Keyword(s):  
Life Satisfaction ◽  
Propensity Score ◽  
Probit Model ◽  
Ordered Probit ◽  
Primary Data ◽  
Ordered Probit Model ◽  
Future Research ◽  
Content Type ◽  
Credit Access ◽  
Physical Assets

Purpose The purpose of this paper is to evaluate the non-monetary effect of credit access by providing an econometric framework which controls the problem of selection bias. Design/methodology/approach The study is conducted in Assam, India and uses a quasi-experiment design to gather primary data. The ordered probit model is used to evaluate the non-monetary impact of credit access. The paper uses a propensity score approach to check the robustness of the ordered probit model. Findings The study confirms the positive association of credit access to life satisfaction of borrowers. It is found that, in general, rural borrower’s life satisfaction is influenced by the ability and capacity to work, the value of physical assets of the borrowers as well as some other lenders’ and borrowers’ specific factors. But, the direction of causality of the factors influencing borrowers’ life satisfaction is remarkably different across credit sources. Research limitations/implications The study argues to provide productive investment opportunities to semiformal and informal borrowers while improving their life satisfaction score. Although the results are adjusted for selection and survivorship biases, it is impossible with the available data to assess which non-income factors explain the findings, and therefore this limitation is left to future research. Originality/value The study contributes to the literature of rural credit by assessing the probable differences among formal, semiformal and informal credit sources with respect to non-monetary impacts.

Credit constraints and labour allocation decisions in rural Burkina Faso

2017 ◽  
Vol 77 (2) ◽  
pp. 257-274 ◽  
Author(s):  
Mohamed Porgo ◽  
John K.M. Kuwornu ◽  
Pam Zahonogo ◽  
John Baptist D. Jatoe ◽  
Irene S. Egyir
Keyword(s):  
Burkina Faso ◽  
Agricultural Production ◽  
Credit Constraints ◽  
Probit Model ◽  
Multinomial Logit Model ◽  
Farm Households ◽  
Content Type ◽  
Labour Market Participation ◽  
On Farm ◽  
Allocation Decisions

Purpose Credit is central in labour allocation decisions in smallholder agriculture in developing countries. The purpose of this paper is to analyse the effect of credit constraints on farm households’ labour allocation decisions in rural Burkina Faso. Design/methodology/approach The study used a direct elicitation approach of credit constraints and applied a farm household model to categorize households into four labour market participation regimes. A joint estimation of both the multinomial logit model and probit model was applied on survey data from Burkina Faso to assess the effect of credit constraint on the probability of choosing one of the four alternatives. Findings The results of the probit model showed that households’ endowment of livestock, access to news, and membership to an farmer-based organization were factors lowering the probability of being credit constrained in rural Burkina Faso. The multinomial logit model results showed that credit constraints negatively influenced the likelihood of a farm household to use hired labour in agricultural production and perhaps more importantly it induces farm households to hire out labour off farm. The results also showed that the other components of household characteristics and farm attributes are important factors determining the relative probability of selecting a particular labour market participation regime. Social implications Facilitating access to credit in rural Burkina Faso can encourage farm households to use hired labour in agricultural production and thereby positively impacting farm productivity and relieving unemployment pressures. Originality/value In order to identify the effect of credit constraints on farm households’ labour decisions, this study examined farm households’ decisions of hiring on-farm labour, supplying labour off-farm or simultaneously hiring on-farm labour and supplying family labour off-farm under credit constraints using the direct elicitation approach of credit constraints. To the best of the authors’ knowledge, this study is the first to examine this problem in Burkina Faso.

scholarly journals Stochasticity in Colonial Growth Dynamics of Individual Bacterial Cells

2013 ◽  
Vol 79 (7) ◽  
pp. 2294-2301 ◽  
Author(s):  
Konstantinos P. Koutsoumanis ◽  
Alexandra Lianou
Keyword(s):  
Kinetic Parameters ◽  
Single Cells ◽  
Growth Curves ◽  
Growth Dynamics ◽  
Time Lapse ◽  
Initial Population ◽  
Bacterial Cells ◽  
Stochastic Growth ◽  
Bacterial Populations ◽  
Content Type

ABSTRACTConventional bacterial growth studies rely on large bacterial populations without considering the individual cells. Individual cells, however, can exhibit marked behavioral heterogeneity. Here, we present experimental observations on the colonial growth of 220 individual cells ofSalmonella entericaserotype Typhimurium using time-lapse microscopy videos. We found a highly heterogeneous behavior. Some cells did not grow, showing filamentation or lysis before division. Cells that were able to grow and form microcolonies showed highly diverse growth dynamics. The quality of the videos allowed for counting the cells over time and estimating the kinetic parameters lag time (λ) and maximum specific growth rate (μmax) for each microcolony originating from a single cell. To interpret the observations, the variability of the kinetic parameters was characterized using appropriate probability distributions and introduced to a stochastic model that allows for taking into account heterogeneity using Monte Carlo simulation. The model provides stochastic growth curves demonstrating that growth of single cells or small microbial populations is a pool of events each one of which has its own probability to occur. Simulations of the model illustrated how the apparent variability in population growth gradually decreases with increasing initial population size (N0). For bacterial populations withN0of >100 cells, the variability is almost eliminated and the system seems to behave deterministically, even though the underlying law is stochastic. We also used the model to demonstrate the effect of the presence and extent of a nongrowing population fraction on the stochastic growth of bacterial populations.

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