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 November 28, 2014 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 November 28, 2014).

Share This


More From ScienceDaily



More Science & Society News

Friday, November 28, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Ebola Leaves Orphans Alone in Sierra Leone

Ebola Leaves Orphans Alone in Sierra Leone

AFP (Nov. 27, 2014) The Ebola epidemic sweeping Sierra Leone is having a profound effect on the country's children, many of whom have been left without any family members to support them. Duration: 01:02 Video provided by AFP
Powered by NewsLook.com
EU Pushes Google For Worldwide Right To Be Forgotten

EU Pushes Google For Worldwide Right To Be Forgotten

Newsy (Nov. 27, 2014) Privacy regulators recommend Google expand its requested removals to apply to all its web domains. Video provided by Newsy
Powered by NewsLook.com
Who Will Failed Nuclear Talks Hurt Most?

Who Will Failed Nuclear Talks Hurt Most?

Reuters - Business Video Online (Nov. 25, 2014) With no immediate prospect of sanctions relief for Iran, and no solid progress in negotiations with the West over the country's nuclear programme, Ciara Lee asks why talks have still not produced results and what a resolution would mean for both parties. Video provided by Reuters
Powered by NewsLook.com
FCC Forces T-Mobile To Alert Customers Of Data Throttling

FCC Forces T-Mobile To Alert Customers Of Data Throttling

Newsy (Nov. 25, 2014) T-Mobile and the FCC have reached an agreement requiring the company to alert customers when it throttles their data speeds. Video provided by Newsy
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