Abstract

New technology-based firms (NTBFs) are usually created by entrepreneurs with a technical or scientific background. They are highly skilled at a given technology but may not have business experience, while these firms need a balance of technical and managerial skills in order to succeed. The problem is exacerbated because most technology entrepreneurs focus on perfecting their technology at the expense of neglecting the market and customers’ preferences. They often have a ‘technology push’ view of innovation. There is abundant literature about start-up knowledge and the managerial skills that entrepreneurs need to deploy. Business education, prior managerial experience, prior start-up experience, and social capital are considered sources or drivers of these managerial skills. But little attention is paid to the influence of managers in the ‘technology push’ view of innovation in NTBFs. This research is devoted to explore this gap. The case study was chosen as the research methodology. Three Spanish NTBFs from the health provision, the drug delivery, and the ceramic hard coatings industries were studied. As a conclusion, the main role of managers in NTBFs consists of ensuring a market orientation, halting exploration, ensuring the accomplishment of functions and the possession skills, ensuring investors’ understanding of the firm’s business model, and partnering with experts.

Abstract

New technology-based firms (NTBFs) are usually created by entrepreneurs with a technical or scientific background. They are highly skilled at a given technology but they may not have any business experience. Nonetheless, these firms need a balance between technical and managerial skills in order to succeed. Most technology entrepreneurs focus on perfecting a particular technology rather than on the market and customer preferences, which worsens the problem. They often have a ‘technology push’ view of innovation. There is abundant literature on start-up knowledge and on the managerial skills required of entrepreneurs. However, little attention is paid to the influence of managers in the ‘technology push’ view of innovation in NTBFs. This research is devoted to exploring this gap. The case study was chosen as the research methodology. Three Spanish NTBFs from the healthcare and the ceramic hard coatings industries were studied. It was concluded that the main role of managers in NTBFs consists in adopting a market orientation, limiting exploration, and ensuring employees have the necessary skills and accomplish their functions. Managers need to partner with experts and make sure investors understand the firm’s business model.