Organisational capabilities and the long-term survival of new technology-based firms

Journal article, 2016

Purpose: This study aims to analyse organisational capabilities among new technology-based firms (NTBFs) and examine how these capabilities are linked to the firms’ long-term survival. Design/methodology/approach: The study leverages a data set of 131 NTBFs located at 16 incubators in Sweden. The first part of the analysis seeks suitable organisational capabilities as determinants of firm survival. The second part is a statistical analysis. The organisational capabilities comprise six variables concerning business experience, financing and international markets. Findings: The study comprises two data collections, with the first data collection being conducted in 2005, and the second in 2014. The survival rate for these firms was 55 per cent according to their respective annual reports in 2013. First, this study showed that the logistic regression model that included the three organisational capabilities is significant. Second, one variable is significant at the variable level: business experience. In addition, the control variable firm size is also significant. Originality/value: Further empirical research in this area is required as the current research on organisational capabilities is quite limited and mainly conceptual in nature. Very few related studies focus on NTBFs and their survival. This study demonstrates a significant logistic regression model to determine links between organisational capabilities and firm survival.