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.

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 October 1, 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 October 1, 2014).

Share This



More Science & Society News

Wednesday, October 1, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Some Positive Ebola News: Outbreak 'Contained' In Nigeria

Some Positive Ebola News: Outbreak 'Contained' In Nigeria

Newsy (Sep. 30, 2014) The CDC says a new case of Ebola has not been reported in Nigeria for more than 21 days, leading to hopes the outbreak might be nearing its end. Video provided by Newsy
Powered by NewsLook.com
UN Ebola Mission Head: Immediate Action Is Crucial

UN Ebola Mission Head: Immediate Action Is Crucial

AFP (Sep. 30, 2014) The newly appointed head of the United Nations Mission for Ebola Emergency Response (UNMEER), Anthony Banbury, outlines operations to tackle the virus. Duration: 00:39 Video provided by AFP
Powered by NewsLook.com
CDC Confirms First Case of Ebola in US

CDC Confirms First Case of Ebola in US

AP (Sep. 30, 2014) The CDC has confirmed the first diagnosed case of Ebola in the United States. The patient is being treated at a Dallas hospital after traveling earlier this month from Liberia. (Sept. 30) Video provided by AP
Powered by NewsLook.com
Argentina's Tax Evaders Detected, Hunted Down by Drones

Argentina's Tax Evaders Detected, Hunted Down by Drones

AFP (Sep. 30, 2014) Argentina doesn't only have Lionel Messi the footballer, it has now also acquired "Mesi" the drone system which monitors undeclared mansions, swimming pools and soy fields to curb tax evasion in the country. Duration: 01:18 Video provided by AFP
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