Dynamic capabilities and the growth of technology-based new ventures

Strehle, Florian Thomas (2006)

Doctoral Thesis

Under the influence of increasing globalisation the creation and development of technology-based entrepreneurial firms is considered a prevalent means to fuel economic growth and prevent further unemployment, especially in Western European economies. This dissertation denotes the process of new venture growth employing a dynamic capabilities framework. In this context, dynamic capabilities are a company's ability to adapt its organisational setup when growing. The study comprises 44 new and high-growth ventures in the Munich region that are observed over a period of almost 6 years on average. Thus, the research design considers the longitudinal and dynamic character of the entrepreneurial growth process. The findings of this empirical research suggest that the evolution of dynamic capabilities plays a major role in the growth of technology-based new ventures. Firms that are not able to develop certain functional skills jeopardise initial performance. However, not all capabilities fuel organisational growth from the start. Thus, management teams should carefully prioritise to deploy their scarce resources effectively. Reflecting on the results of this study the sequence of capability evolution also has a significant impact on new venture performance. Companies following a "logical" sequence show higher growth rates than other new ventures in their early days.

• Entrepreneurship
• Longitudinal research design
• Management control systems
• Organisational development
• Organisational learning
• Resource-based view of the firm
• Venture capital

• All authors: Strehle, Florian Thomas
• Supervisor: Katzy, B.R.
• Co-supervisor: Dávila, A.
• Qualification: Doctor (dr.)
• Awarding Institution: Faculty of Science, Leiden University
• Date: 2006-10-31