Early Development of New Technology-Based Firms: How Internal and External Resource Dimensions Impact and Structure the Firm

How do founders’ and firms’ business environment impact the early development of new technology-based firms (NTBFs)? In order to answer this question, this thesis explores how internal and external resource dimensions impact and structure the early development of NTBFs. NTBFs are known for their technological innovation and their abilities to boost economic growth and development. These new, young firms are vulnerable in their first years of development, and their development is dependent on resources related to the founders and external business environment. Impacts from these internal and external resource dimensions provide means for firms to develop. Explaining how these dimensions together influence the early development of NTBFs would broaden the perspective on these firms in their first years, clarifying the type of support required for these firms. Examining NTBFs both qualitatively and quantitatively, the thesis analysed the structuring of the early development and the impacts on it, including business- and innovation performance, and initial business models. Findings reveal that the early development is affected by internal resource dimensions, such as founders’ previous business experiences and relationships within their business environment, and by external resource dimensions such as the type of business networks and firm localisation. However, impacts from these internal or external resource dimensions differ over time depending on founders’ experiences, maturity, and self-trust, and hence one dimension or the other dominates the early development. The thesis contributes to the research on NTBFs and entrepreneurship, describing and analysing imprinting effects of the aforementioned dimensions, such as founders’ attitudes, on the firms’ early development. It also discussed how the external business environment becomes less influential on the firms’ development as the founders rely more on own decisions to do business

Initial configurations and business models in new technology-based firms

Purpose:  The purpose of the paper is to analyse founders’ perceptions of initial configurations and business models in new technology-based firms (NTBFs).Design: Case studies were performed using semi-structured interviews and interactive techniques involving open questions and activity cards to capture perceptions of activities that form the firms’ business models.Findings: The Business Model template, commonly referred to as the Business Model Canvas, is frequently used among these companies and seemed to have shaped the business model discourse in our case companies. Our findings also indicate that founders of NTBFs perceive their customer value proposition as the most valuable element of their business model. We also recognized signs of the influence of financial partners on the founders’ perceptions of the initial business models. Furthermore, findings show that some NTBFs create parallel business models within their firms to ensure survival in the start-up phase.Originality/value: The paper adds value to business model research by describing how NTBFs’ structure their initial business activities and the elements of their initial business models perceived to be as more crucial during the early years as well as how these perceptions change

Business networks and localization effects for new Swedish technology-based firms’ innovation performance

This study examines the business networks and localization effects for new technology-based firms (NTBFs) in the context of innovation performance (the number of patents and product differentiation). In this regard, the study includes 28 variables. A survey was conducted in 2016 with 401 Swedish NTBFs that were small and young (the employment mean was 1.80 and the average age of each firm was 28.3\ua0months). The biggest category of NTBFs was knowledge-intensive high-technology services, followed by medium high-technology manufacturing, and high-technology manufacturing. Hypotheses on how business networks and localization are related to innovation performance were tested using principal component analysis, correlation analysis, and regression analysis. The results show that the primary significant factor for innovation performance regarding business networks and localization dimensions are professional network services, while industrial and regional areas also have a positive relationship on product differentiation. Our study also shows that innovation performance enhances firms’ abilities to access external financing through professional network services (e.g., venture capital companies)

The Roles of Stakeholders in Business Model Development

Objectives: Expanding the focus of the business model as firm-centric, and developed internally based on the founder or manager, this paper emphasis the notion of network-embeddedness and investigates how stakeholders take role in the business model development in new technology-based firms (NTBF).Prior work: The business model as a concept has been studied by researchers to describe how firms create and capture value, thus, how the firms ‘do businesses’ and how they perform. In this sense, the business model is firm-centric. With increased attention on business model innovation, the development of business models in young firms would need further investigation to increase awareness of how founders focus their attention to develop their initial business models. Furthermore, for NTBFs, resources in the start-up phase are scarce and thus, collaboration with stakeholders in the business network is necessary. Accordingly, the young firm need to rely on external organisations to gain access to resources. Consequently, the business network and the players (stakeholders) in it would impact on the business model developed. However, from the perspective of the business model as network-embedded, how these stakeholders take part in the business model development is still not clear and needs further investigation to explain the roles that different stakeholders play in the business configuration.Approach: The study is based on a longitudinal case study of two NTBFs. Semi-structured interviews with founders of the two case firms over a period of one and a half years, including retrospective data from the first years of start-up, have provided the basis for examine the development of the firms’ business models and what roles different stakeholders played in the development. Further, drawing on an attention-based view of the firm, the cases were analysed to explain mechanisms through which the roles played an important part for the focus of attention in business configuration.Results: The findings indicate that the most common roles of external stakeholders frequently interacting with the NTBF are ‘advisor’, ‘connector’, ‘evaluator’, ‘co-developer’, and ‘supplier of know-how’. The roles of business advisors at Science Parks and incubators differ between the role as advisor and the role as connector for the young firm, depending on the kind of previous industry experience of the founder. Customers and suppliers are the most influencing stakeholders for the firm’s initial business model and share the similarities of playing the role of ‘co-developer’, which is a role that impact on the firm’s value proposition, however, in different ways depending on type of exchange between stakeholder and focal firm. Overall, the closeness of interaction between the founder and a stakeholder (e.g., customer), and the exchange between then, made the role more influential for the business model development, but the role’s impact further depended on what schemas that existed for the founder to structure their attention at founding. Accordingly, three mechanisms were identified through which stakeholders play important roles of the business model developed; closeness of interaction, type of exchange, and founder’s suitable attention structure.Implication and value: The paper adds value to the research field of business models, concerning both academia and practitioner, by offering insights of the role of a firm’s network for business model development and what roles different stakeholder play. Thus, highlighting the firm’s network, allows for a broader perspective on the business model and what roles that are influencing on what is going on with the business model at a firm’s start-up

The Roles of Stakeholders in Business Model Development

Objectives: Expanding the focus of the business model as firm-centric, and developed internally based on the founder or manager, this paper emphasis the notion of network-embeddedness and investigates how stakeholders take role in the business model development in new technology-based firms (NTBF).Prior work: The business model as a concept has been studied by researchers to describe how firms create and capture value, thus, how the firms ‘do businesses’ and how they perform. In this sense, the business model is firm-centric. With increased attention on business model innovation, the development of business models in young firms would need further investigation to increase awareness of how founders focus their attention to develop their initial business models. Furthermore, for NTBFs, resources in the start-up phase are scarce and thus, collaboration with stakeholders in the business network is necessary. Accordingly, the young firm need to rely on external organisations to gain access to resources. Consequently, the business network and the players (stakeholders) in it would impact on the business model developed. However, from the perspective of the business model as network-embedded, how these stakeholders take part in the business model development is still not clear and needs further investigation to explain the roles that different stakeholders play in the business configuration.Approach: The study is based on a longitudinal case study of two NTBFs. Semi-structured interviews with founders of the two case firms over a period of one and a half years, including retrospective data from the first years of start-up, have provided the basis for examine the development of the firms’ business models and what roles different stakeholders played in the development. Further, drawing on an attention-based view of the firm, the cases were analysed to explain mechanisms through which the roles played an important part for the focus of attention in business configuration.Results: The findings indicate that the most common roles of external stakeholders frequently interacting with the NTBF are ‘advisor’, ‘connector’, ‘evaluator’, ‘co-developer’, and ‘supplier of know-how’. The roles of business advisors at Science Parks and incubators differ between the role as advisor and the role as connector for the young firm, depending on the kind of previous industry experience of the founder. Customers and suppliers are the most influencing stakeholders for the firm’s initial business model and share the similarities of playing the role of ‘co-developer’, which is a role that impact on the firm’s value proposition, however, in different ways depending on type of exchange between stakeholder and focal firm. Overall, the closeness of interaction between the founder and a stakeholder (e.g., customer), and the exchange between then, made the role more influential for the business model development, but the role’s impact further depended on what schemas that existed for the founder to structure their attention at founding. Accordingly, three mechanisms were identified through which stakeholders play important roles of the business model developed; closeness of interaction, type of exchange, and founder’s suitable attention structure.Implication and value: The paper adds value to the research field of business models, concerning both academia and practitioner, by offering insights of the role of a firm’s network for business model development and what roles different stakeholder play. Thus, highlighting the firm’s network, allows for a broader perspective on the business model and what roles that are influencing on what is going on with the business model at a firm’s start-up

Initial Business Models in New Technology-Based Firms: Dimensions and Founders\u27 Prioritisations

Business models have been emphasised in research as an important concept for studying and understanding firms’ value creation and performance. The business model in literature is understood as how firms configure their businesses, including how they create and deliver value for their customers, and how they capture economic value from its offering. Recently, research has highlighted the founder’s role in the firm’s business model, pointing to a cognitive perspective in business models. Emphasising this perspective makes founders’ perceptions and prioritisations essential in understanding the link between business models and firm performance. However, the relationship of these prioritisations to the business model dimensions in extant literature still requires clarification, and so far, such a connection has not been fully addressed.The purpose of this thesis is to connect business model dimensions and founders’ prioritisations. This is addressed through a systematic literature review of business models and through a multiple-case study, including interactive and retrospective parts, of eight new technology-based firms (NTBFs).The results recognise three measurable dimensions of the business model in literature: innovation, change, and efficiency. Measurements are identified for each of these dimensions to facilitate the connection of each dimension with firm performance. Further, the case study’s results demonstrate three distinct ways in which founders of NTBFs prioritise within their business model in the start-up phase. These prioritisations focus on customers, value chain partners, and finance. This thesis further recognises a connection between the customer-focused business model in NTBFs and innovation and change dimensions, and a connection between prioritising partners and the change and efficiency dimension. Additionally, the results indicate a connection between the financial focus and the business model’s dimension of efficiency.The thesis contributes to business model literature, and to the field of entrepreneurship, by addressing the connection between business model dimensions in literature and founders’ prioritisations. Moreover, the thesis suggests future research with a focus on the interrelations among business model dimensions, and potential effect of these dimensions and founders’ prioritisations on firm performance

Initial Business Models in New Technology-Based Firms: Dimensions and Founders\u27 Prioritisations

Business models have been emphasised in research as an important concept for studying and understanding firms’ value creation and performance. The business model in literature is understood as how firms configure their businesses, including how they create and deliver value for their customers, and how they capture economic value from its offering. Recently, research has highlighted the founder’s role in the firm’s business model, pointing to a cognitive perspective in business models. Emphasising this perspective makes founders’ perceptions and prioritisations essential in understanding the link between business models and firm performance. However, the relationship of these prioritisations to the business model dimensions in extant literature still requires clarification, and so far, such a connection has not been fully addressed.The purpose of this thesis is to connect business model dimensions and founders’ prioritisations. This is addressed through a systematic literature review of business models and through a multiple-case study, including interactive and retrospective parts, of eight new technology-based firms (NTBFs).The results recognise three measurable dimensions of the business model in literature: innovation, change, and efficiency. Measurements are identified for each of these dimensions to facilitate the connection of each dimension with firm performance. Further, the case study’s results demonstrate three distinct ways in which founders of NTBFs prioritise within their business model in the start-up phase. These prioritisations focus on customers, value chain partners, and finance. This thesis further recognises a connection between the customer-focused business model in NTBFs and innovation and change dimensions, and a connection between prioritising partners and the change and efficiency dimension. Additionally, the results indicate a connection between the financial focus and the business model’s dimension of efficiency.The thesis contributes to business model literature, and to the field of entrepreneurship, by addressing the connection between business model dimensions in literature and founders’ prioritisations. Moreover, the thesis suggests future research with a focus on the interrelations among business model dimensions, and potential effect of these dimensions and founders’ prioritisations on firm performance

Stakeholder roles in business model development in new technology-based firms

This paper examines the roles of external stakeholders in the business model development of new technology-based firms (NTBFs) from the perspective of the founders. Based on a longitudinal study of two Swedish NTBFs, semi-structured interviews, including timeline mapping, were conducted with the founders of each firm over a period of two years, drawing on retrospective data from the first year of founding. The findings reveal that stakeholder interaction is first initiated based on the position the stakeholder has in relation to the firm, whereas what tasks the stakeholder perform in relation to NTBF resource needs has greater consequences for the business model development. The roles of stakeholders further help shape founder perceptions of how to do business, although such influence may be limited over time. The results provide valuable insight into the influence of founders’ perceptions and firms’ business networks on the business configuration of NTBFs, revealing that business model development is both endogenous and exogenous. Specifically, the study provides some original insights around which roles stakeholders play in the early development of the business model and why these roles are necessary at certain points in time

Stakeholders’ Roles in Business Model Development of New Technology-Based Firms

Firms’ business models develop from interactions with external stakeholders, though the consequences of such interactions for the initial business models are unclear. This study investigates stakeholders’ roles in new technology-based firms’ (NTBFs’) business model development and the mechanisms explaining the importance of these roles in the founders’ focus of attention during development. Through a longitudinal case study of two Swedish NTBFs, the results reveal that external stakeholders’ roles become influential through close interactions, and the types of exchanges between the founder and stakeholders, which have consequences for different parts of the business model. Furthermore, the importance of the role depends on the cognitive schemas, based on previous experience, that exist within the founder at the time of founding, which affects duration of development. The results provide valuable insights on the influence of firms’ networks on the business configuration and founders’ attention structure; thus, indicating that the business model is network-related

Initial configurations and business models in new technology-based firms: A case study approach

Purpose: This paper aims to analyse perceptions of initial configuration and business models in new technology-based firms (NTBFs). Based on our findings on this exploratory study we also aim to search for theoretical explanation of the observed behaviour and to give insights to support future development of quantitative measurements of initial business models. Design: The paper is empirically investigating initial configurations and business models of NTBFs in the first years of start-up, with data compiled from case studies of 8 Swedish NTBFs. Firms were selected based on Statistical Classification of Economic Activities in the European Community (NACE) codes considered high-tech and the year of founding.Findings: The study illustrate how founders structure their business activities in the start-up, and which components of the business model that they consider most important (e.g. identify value proposition and create relationship to customers). We could also recognise signs of isomorphic behaviour among the NTBFs, which suggest that institutional theory could be a fruitful area for future research on business models.Originality/value: The paper adds value to business model research by describing how NTBFs’ structure their initial business activities and which dimensions of the initially business model that are perceived as more crucial during the early years of NTBFs. Furthermore, we also contribute to future development of quantitative measurements of initial business models