Incubators, entrepreneurs, strategy and performance: A comparison of high and low growth high tech firms

Henry Roger Feeser, Purdue University

Abstract

This research compares high and low growth firms in the computing industry along dimensions of charcteristics of the founding entrepreneur(s), previous employment (incubator(s)), and strategies during founding. Sixteen hypotheses are proposed and tested. The results of these tests disclose a profile of high growth founders and their strategies which differs markedly from low growth founders. These differences were found to exist in the size and type of incubator, technology/markets served, size of start-up teams, initial product/focus, niche strategy, and customer focus. The findings suggest that high growth founders incubate in larger organizations, and have more start-up experience. High and low growth founders and/or firms are equally likely to locate in close proximity to their incubator organizations, are the same age, perceive entry barriers in a similar manner, are not motivated differently by pushes from their prior employment nor by goals at founding, are equally likely to be pioneers, do not consider acquisition to be important to growth, are equally likely to compete in niche markets, and with the exception of service, use similar competitive strategies. The results are consistent with previous research regarding strategy and performance. The results do not support characteristics of the entrepreneur hypotheses nor entirely incubator empirical findings, and suggest a contingency theory approach rather than broad generalizations.

Degree

Ph.D.

Subject Area

Management

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