Factors and circumstances affecting the business performance of firms based on new technologies
-
Author(s)Štefan SlavikLink to ORCID Index: https://orcid.org/0000-0002-2890-8091
,
Veronika BednarovaLink to ORCID Index: https://orcid.org/0000-0003-2286-8962
-
DOIhttp://dx.doi.org/10.21511/ppm.22(3).2024.35
-
Article InfoVolume 22 2024, Issue #3, pp. 458-474
- 135 Views
-
49 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
New technology-based firms (NTBFs) invent, develop, and commercialize original technologies whose research, development, and commercial success is highly uncertain and risky. Their growth is lengthy and often insufficient, but investors’ growth expectations are high. The study aims to determine factors and circumstances that affect the growth of new technology-based firms. The source of knowledge is a personal experience from a guided interview with the founder, which is recorded in the questionnaire. The research sample includes 67 NTBFs doing business in Slovakia. The respondents’ statements were analyzed using critical discourse analysis (CDA) with the support of artificial intelligence. The results are the factors that influence the business performance of the investigated companies. The performance of companies that show a long-term loss is affected by very limited access to financial resources, restrictive regulations, and a lack of qualified employees. The performance of companies that show a long-term profit is influenced by favorable access to external capital, effective management of human resources, optimization of internal processes, and improvement of marketing. The order of the identified factors expresses their importance in the thematic group. The secondary results are the accompanying circumstances of the growth of the investigated companies, namely the reasons for the establishment of NTBF and entry into business, commercialization of new technology, and cooperation with investors and banks. The combination of limited access to finance and a lack of qualified human resources creates a complex set of obstacles to the business performance of NTBFs.
Acknowledgment
This work was supported by the Scientific Grant Agency of the Ministry of Education of the Slovak Republic and Slovak Academy of Sciences (VEGA) under the grant “Accelerating the growth of innovative enterprises - scaling up scale-ups and new technology-based firms (NTBFs)”, number 1/0006/22.
- Keywords
-
JEL Classification (Paper profile tab)L26, M13, O30, O32
-
References60
-
Tables0
-
Figures1
-
- Figure 1. Factors affecting the performance of NTBFs and problems with production capacity, accompanying services, suppliers, and financing
-
- Almus, M., & Nerlinger, E. A. (1999). Growth of new technology-based firms: Which factors matter? Small Business Economics, 13(2), 141-154.
- Baier-Fuentes, H., Guerrero, M., & Amorós, J. E. (2021). Does triple helix collaboration matter for the early internationalization of technology-based firms in emerging economies? Technological Forecasting & Social Change, 163, Article 120439.
- Bonnín Roca, J., Vaishnav, P., Morgan, M. G., Mendonça, J., & Fuchs, E. (2017). When risks cannot be seen: Regulating uncertainty in emerging technologies. Research Policy, 46(7), 1215-1233.
- Budi, A. A., & Aldianto, L. (2020). Research and development – Commercialization bridge: A refined model. The Asian Journal of Technology Management, 13(1), 47-62.
- Burns, P. (2014). New venture creation. A framework for entrepreneurial start-ups. Palgrave MacMillan.
- Cahen, F. R., Oliveira Jr., M. M., & Borini, F. M. (2017). The internationalization of new technology-based firms from emerging markets. International Journal of Technology Management, 74(1/4), 23-44.
- Camisón-Habaa, S., Clemente-Almendros, J. A., & Gonzalez-Cruza, T. (2019). How do technology-based firms become also highly innovative firms? The role of knowledge, technological and managerial capabilities, and entrepreneurs’ background. Journal of Innovation & Knowledge, 4(3), 162-170.
- Carrick, J. (2023). Navigating the path from innovation to commercialization: A review of technology-based academic entrepreneurship. Journal of Applied Business Research, 39(1).
- Cbinsights. (2021, August 3). The top 12 reasons start-ups fail.
- Cingerová, N., & Motyková, K. (2017). Úvod do diskurznej analýzy [Introduction to discourse analysis]. Comenius University in Bratislava. (In Slovak).
- Combs, J. G., Ketchen, D. J. Jr, Terjesen, S. A., & Bergh, D. D. (2023). After the start-up: A collection to spur research about entrepreneurial growth. Strategic Entrepreneurship Journal, 17(3), 693-709.
- Cunha, D., Silva, S., & Teixeira, A. A. C. (2013). Are academic spin-offs necessarily new technology-based firms? FEP Working Papers, 482.
- Dabić, M., Vlačić, B., Kiessling, T., Caputo, A., & Pellegrini, M. (2023). Serial entrepreneurs: A review of literature and guidance for future research. Journal of Small Business Management, 61(3), 1107-1142.
- Fairclough, N. (1995). Critical discourse analysis. Longman.
- Farnoodi, S., Ghazinoory, S., Radfar, R., & Tabatabaian, S. H. (2020). Governmental origin: Why NTBFs grow in a transitional economy. Economic Research-Ekonomska Istraživanja, 33(1), 379-398.
- Ferrucci, E., Guida, R., & Meliciani, V. (2021). Financial constraints and the growth and survival of innovative start-ups: An analysis of Italian firms. European Financial Management, 27(2), 364-386.
- Fudickar, R., & Hottenrott, H. (2019). Public research and the innovation performance of new technology-based firms. The Journal of Technology Transfer, 44(2), 326-358.
- García-Cabrera, A. M., García-Soto, M. G., & Nieves, J. (2021) Knowledge, innovation and NTBF short- and long-term performance. International Entrepreneurship and Management Journal, 17, 1067-1089.
- Haessler, P., Giones, F., & Brem, A. (2023). The who and how of commercializing emerging technologies: A technology-focused review. Technovation, 121, Article 102637.
- Isaksson, A., Löfsten, H., & Rannikko, H. (2021). The influence of initial business models on early business performance: A study of 589 new high-tech firms. International Journal of Innovation Management, 25(05).
- Jafari-Sadeghi, V. (2020). The motivational factors of business venturing: Opportunity versus necessity? A gendered perspective on European countries. Journal of Business Research, 113, 279-289.
- Kedzior, M., Grabinska, B., Grabinski, K., & Kedzior, D. (2020). Capital structure choices in technology firms: Empirical results from Polish listed companies. Journal of Risk and Financial Management, 13(9), Article 221.
- Leitão, J., Ratten, V., & Braga, V. (2022). Latin American and Iberian entrepreneurship. New perspectives on culture, traditions and heritage. Springer Nature Switzerland.
- Little, A. D. (1977). New technology-based firms in the United Kingdom and the Federal Republic of Germany. London: Wilton House.
- Liu, K., & Guo, F. (2016). A review on critical discourse analysis. Theory and Practice in Language Studies, 6(5), 1076-1084.
- Löfsten, H., Isaksson, A., & Rannikko, H. (2023). Entrepreneurial networks, geographical proximity, and their relationship to firm growth: A study of 241 small high-tech firms. The Journal of Technology Transfer, 48, 2280-2306.
- Löfsten, H., Isaksson, A., Rannikko, H., Tornikoski, E., & Buffart, M. (2024). Impact of the initial business model on the growth trajectory of new technology-based firms: A path dependency perspective. The Journal of Technology Transfer.
- Luo, A. (2023, June 22). Critical discourse analysis. Definition, guide & examples. Scribbr.
- Lutz, A. (2003). Nuevos paradigmas y nuevas oportunidades: nichos de mercado para emprendedores tecnológicos. Experiencias prácticas en la Unión Europea [New paradigms and new opportunities: niche markets for technology entrepreneurs. Practical experiences in the European Union]. In K. Simón (Ed.), La creación de empresas de base tecnológica: Una experiencia práctica [The creation of technology-based companies: A practical experience] (pp. 43-50). Navarra: Asociación Española de Centros Europeos de Innovación Españoles. (In Spanish).
- Makri, C., & Neely, A. (2021). Grounded theory: A guide for exploratory studies in management research. International Journal of Qualitative Methods, 20.
- Malec, M., Stańczak, L., & Ricketts, B. (2020). Integrated commercialization model of research and development project results. Management Systems in Production Engineering, 28(4), 228-239.
- Mauer, R., Nieschke, S., & Sarasvathy, S. D. (2024). Gestation in new technology ventures: Causal brakes and effectual pedals. Journal of Small Business Management, 62(1), 67-102.
- Mazzarol, T., & Reboud, S. (2020). Entrepreneurship and innovation. Theory, practice and context (4th ed.). Springer Nature Singapore.
- Mazzarol, T., Reboud, S., Clark, D., Moore, M., Malone, P., & Soutar, G. N. (2022). Commercialisation and innovation strategy in small firms. Learning to manage uncertainty. Springer Nature Singapore.
- Min, J-W., Kim, Y. J., & Vonortas, N. S. (2020). Public technology transfer, commercialization, and business growth. European Economic Review, Elsevier, 124, Article 103407.
- Morales-Alonso, G., Blanco-Serrano, J.A., Núñez Guerrero, Y., Grijalvo, M., & Blanco Jimenez, F. J. (2024). Theory of planned behaviour and GEM framework – How can cognitive traits for entrepreneurship be used by incubators and accelerators? European Journal of Innovation Management, 27(3), 922-943.
- Mullet, D. R. (2018). A general critical discourse analysis framework for educational research. Journal of Advanced Academics, 29(2), 116-142.
- Myers, A., & Albats, E. (2024). The challenges and strategic solutions of emerging technology entrepreneurship: A systematic literature review. Proceedings of the 57th Hawaii International Conference on System Sciences.
- Pantea, S., & Tkacik, M. (2024). Venture capital and high-tech start-ups in Europe: A systematic review of the empirical evidence. Venture Capital.
- Passavanti, C., Primario, S., & Rippa, P. (2024). A configurative analysis investigating how new technology-based firms gain the first financing round. Journal of Economic Interaction and Coordination, 19, 305-341.
- Pinkwart, A., Proksch, D., Schefczyk, M., Fiegler, T., & Ernst, C. (2015). Reasons for the failure of new technology-based firms: A longitudinal empirical study for Germany. Credit and Capital Markets-Kredit und Kapital, 48(4), 597-627.
- Pisano, G. (2024). How fast does your company really grow? Harvard Business Review.
- Qian, J., Wei, J., & Law, R. (2018). Review of critical discourse analysis in tourism studies. International Journal of Tourism Research, 20(4), 526-537.
- Rannikko, H., Buffart, M., Isaksson, A., Löfsten, H., & Tornikoski, E. T. (2022). Mobilising finance and achieving early growth in new technology-based firms: A legitimacy perspective. International Journal of Entrepreneurial Behaviour & Research, 28(6), 1532-1555.
- Rannikko, H., Tornikoski, E. T., Isaksson, A., & Löfsten, H. (2019). Survival and growth patterns among new technology-based firms: Empirical study of cohort 2006 in Sweden. Journal of Small Business Management, 57(2), 640-657.
- Rydehell, H., & Isaksson, A. (2016). Initial configurations and business models in new technology-based firms. Journal of Business Models, 4(1), 63-83.
- Rydehell, H., Isaksson, A., & Löfsten, H. (2019). Effects of internal and external resource dimensions on the business performance of new technology-based firms. International Journal of Innovation Management, 23(1).
- Rydehell, H., Löfsten, H., & Isaksson, A. (2018). Novelty-oriented value propositions for new technology-based firms: Impact of business networks and growth orientation. The Journal of High Technology Management Research, 29(2), 161-171.
- Santisteban, J., Mauricio. D., & Cachay, O. (2021). Critical success factors for technology-based start-ups. International Journal of Entrepreneurship and Small Business, 42(4), 397-421.
- Statista. (2022). Main reasons for business failure among start-ups worldwide in 2022.
- Stevenson, H. H., & Jarillo, J. C. (1990). A paradigm of entrepreneurship: entrepreneurial management. Strategic Management Journal, 11, 17-27.
- Su, Y., Zhu, Z., Chen, J., Jin, Y., Wang, T., Lin, C.-L., & Xu, D. (2021). Factors influencing the entrepreneurial intention of university students in China: Integrating the perceived university support and theory of planned behaviour. Sustainability, 13, Article 4519.
- Taupin, L., Le Masson, P., & Segrestin, B. (2021). Scale-up phase in deep-tech start-ups: Replication or massive learnings? R&D Management Conference.
- Tchouwo, C. T., Poulin, D., & Veilleux, S. (2021). Understanding the specific characteristics and determinants of open innovation in small and medium-sized enterprises: A systematic literature review. International Journal of Innovation Management, 25(6).
- van Dijk, T. A. (2015). Critical discourse analysis. In D. Tannen, H. E. Hamilton, & D. Schiffrin (Eds.), The Handbook of Discourse Analysis (2nd ed.). Wiley Blackwell.
- Wodak, R., & Meyer, M. (2009). Critical discourse analysis: History, agenda, theory, and methodology. In R. Wodak & M. Meyer (Eds.). Methods for critical discourse analysis. Sage.
- Yoo, H. S., & Jung, Y. L. (2024). The effect of the commercialization failure of SMEs’ R&D on survival. IEEE Transactions on Engineering Management, 71, 6078-6089.
- Zapata Huamaní, G. A., Fernández-López, S., Neira Gómez, I., & Rey Ares, L. (2017). The role of the entrepreneur in new technology-based firms (NTBFs): An analysis according to context. Regional and Sectoral Economic Studies, 17(2), 26-42.
- Zellmer-Bruhn, M. E., Forbes, D. P., Sapienza, H. J., & Borchert, P. S. (2021). Lab, gig, or enterprise? How scientist-inventors form nascent start-up teams. Journal of Business Venturing, 36(1), Article 106074.
- Zhihao, Y. (2022). What are the prerequisites for starting a start-up company? Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022).
-
Qualitative assessment of the development of creative industries in emerging countries: The case of Kazakhstan
Raigul Doszhan ,
Aygerim Nussyupayeva ,
Gulnara Baimakhambetova ,
Laura Ashirbekova ,
Yuriy Bilan
doi: http://dx.doi.org/10.21511/ppm.20(3).2022.28
Problems and Perspectives in Management Volume 20, 2022 Issue #3 pp. 350-361 Views: 589 Downloads: 230 TO CITE АНОТАЦІЯThe creative industries sector is snowballing, and many developing countries see it as a tool for national and local development. Given the regional specificity, political narratives adopted in developed countries may not apply in economies under transition. This paper aims to evaluate the current state of creative business in emerging countries such as Kazakhstan. Adopting the design of a qualitative method, 34 semi-structured interviews were conducted with entrepreneurs and owners of small and medium-sized businesses in Kazakhstan’s creative industries. The Nvivo 10 qualitative data analysis software was used for processing the data. The interviews help to understand better the factors affecting the development of the creative industry. In general, results indicate insufficient support from government agencies, lack of accessible resources to support entrepreneurs (65% of respondents used their capital, while 17% of them were forced to apply for loans from a bank), information availability, and skills shortage. Shortage of skills is also related to the creative brain drain in Kazakhstan. One of the main problems is access to materials and technology since most of the resources are foreign-made and imported.
Acknowledgment
The authors appreciate the grant funding for young scientists Scientific and (or) in the years 2020–2022 the MES science project number AR08052483 “Creative Industries: methodological aspects of classification and quantitative measurements in the Republic of Kazakhstan” in the framework of the budget program 217 “Development of science”.
