Novelty-oriented value propositions for new technology-based firms: Impact of business networks and growth orientation
Journal article, 2018

To perform, new technology-based firms (NTBFs) need to develop value for customers that distinguish
them from others in the market. Therefore, the development of novelty-oriented value
propositions are important, and may be influenced by several factors. We argue that the propensity
to become more novelty-oriented can be influenced by an internal drive to grow (growth
orientation) and by external contributions (business networks). Hence, the purpose of this paper
is to analyse how business networks and growth orientation effects on the novelty orientation of
NTBF value propositions. Based on survey data from 401 NTBFs founded between 2013 and
2015, in the nascent start-up phase novelty-oriented value propositions of NTBFs positively relate
to informal (management) networks, as well as founders' attitudes towards growth. Thus, such
networks and attitudes from founders should be supported in the very early phases of start-up if
novelty orientation is to be preferred as a performance determinant.

growth orientation

value proposition

business networks

new technology-based firm

Author

Hanna Rydehell

Innovation and R&D Management

Hans Löfsten

Chalmers, Technology Management and Economics, Innovation and R&D Management

Anders Isaksson

Chalmers, Technology Management and Economics, Innovation and R&D Management

Journal of High Technology Management Research

1047-8310 (ISSN)

Vol. 29 2 161-171

Driving Forces

Innovation and entrepreneurship

Subject Categories

Business Administration

DOI

10.1016/j.hitech.2018.09.001

More information

Latest update

5/22/2019