Featured Research

from universities, journals, and other organizations

Superior Entrepreneurial Performance Is Not Driven By Technical Knowledge

Date:
May 6, 2009
Source:
Wiley-Blackwell
Summary:
Entrepreneurs in high-technology industries often have significant prior industry experience. A new study in Strategic Management Journal reveals that this experience is critical to their success. Surprisingly, however, it is mainly the non-technical knowledge that founders gain from their experience with prior firms that affects increased achievement at their new firms, rather than direct technical spillovers from the former parent to a new venture.

Entrepreneurs in high-technology industries often have significant prior industry experience. A new study in Strategic Management Journal reveals that this experience is critical to their success. Surprisingly, however, it is mainly the non-technical knowledge that founders gain from their experience with prior firms that affects increased achievement at their new firms, rather than direct technical spillovers from the former parent to a new venture.

Related Articles


Aaron K. Chatterji, Ph.D., of the Fuqua School of Business at Duke University used financial and patenting data sources to assess the impact of industry experience on entrepreneurial performance and innovation in medical device start-ups.

The conventional wisdom is that “spawned” businesses commonly build on technical ideas for products and services that were developed within a former parent firm, either by “hiding” the ideas or because the former employer simply did not want to commercialize the goods and services. By contrast, Chatterji’s work shows that the most important benefits for the spawned new ventures derive less from direct technical innovations at their former parent, but instead from a broader understanding of the industry context, including market and regulatory knowledge.

This experience helps founders identify entrepreneurial opportunities and to target new goods and services in ways that achieve both market acceptance and meet regulatory needs efficiently and effectively. Thus, the most important experience derives more from critical contextual knowledge and less from technical developments at the former parent.

“This research will hopefully lead us to look at entrepreneurship in terms of individuals spawning from existing organizations with valuable market, technical, and regulatory knowledge,” the author concludes. “If we think of entrepreneurship as an organizational phenomenon as much as an individual one, it might change the way we approach business strategy and inform the policies we craft to encourage economic growth.”


Story Source:

The above story is based on materials provided by Wiley-Blackwell. Note: Materials may be edited for content and length.


Journal Reference:

  1. Chatterji et al. Spawned with a silver spoon? Entrepreneurial performance and innovation in the medical device industry. Strategic Management Journal, 2009; 30 (2): 185 DOI: 10.1002/smj.729

Cite This Page:

Wiley-Blackwell. "Superior Entrepreneurial Performance Is Not Driven By Technical Knowledge." ScienceDaily. ScienceDaily, 6 May 2009. <www.sciencedaily.com/releases/2009/05/090506121204.htm>.
Wiley-Blackwell. (2009, May 6). Superior Entrepreneurial Performance Is Not Driven By Technical Knowledge. ScienceDaily. Retrieved January 25, 2015 from www.sciencedaily.com/releases/2009/05/090506121204.htm
Wiley-Blackwell. "Superior Entrepreneurial Performance Is Not Driven By Technical Knowledge." ScienceDaily. www.sciencedaily.com/releases/2009/05/090506121204.htm (accessed January 25, 2015).

Share This


More From ScienceDaily



More Science & Society News

Sunday, January 25, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Florida Might Legalize Black Bear Hunting

Florida Might Legalize Black Bear Hunting

Newsy (Jan. 24, 2015) — A string of black bear attacks has Florida officials considering lifting the ban on hunting the animals to control their population. Video provided by Newsy
Powered by NewsLook.com
Disneyland Measles Outbreak Spreads To 5 States

Disneyland Measles Outbreak Spreads To 5 States

Newsy (Jan. 24, 2015) — Much of the Disneyland measles outbreak is being blamed on the anti-vaccination movement. The CDC encourages just about everyone get immunized. Video provided by Newsy
Powered by NewsLook.com
Tim Cook Made 8 Times Less Than Another Apple Exec In 2014

Tim Cook Made 8 Times Less Than Another Apple Exec In 2014

Newsy (Jan. 23, 2015) — Tim Cook&apos;s total compensation more than doubled in 2014 to $9.2 million, but his pay was still less than four other Apple executives. Video provided by Newsy
Powered by NewsLook.com
Dramatic Footage Shows Coast Guard Rescue Off Scottish Coast

Dramatic Footage Shows Coast Guard Rescue Off Scottish Coast

Reuters - News Video Online (Jan. 23, 2015) — Footage just released by the UK Coast Guard shows a dramatic helicopter rescue off the Scottish coast, where five men were plucked to safety after their fishing boat sank on Saturday. Rough Cut (no reporter narration). Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:

Strange & Offbeat Stories

 

Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins