Management Papers

Document Type

Journal Article

Date of this Version

12-2015

Publication Source

Research Policy

Volume

44

Issue

10

Start Page

1815

Last Page

1826

DOI

10.1016/j.respol.2015.06.016

Abstract

We present a synthetic framework in which a technology entrepreneur employs a dynamic commercialization strategy to overcome obstacles to the adoption of the firm’s ideal strategy. Whereas prior work portrays the choice of whether to license a new technology or to self-commercialize as a single, static decision, we suggest that when entrepreneurs encounter obstacles to their ideal strategy they can nevertheless achieve it by temporarily adopting a non-ideal strategy. We refer to the sequential implementation of commercialization strategies, in which the first strategy enables the second, as a switchback—reminiscent of zigzag paths that enable passage up steep mountains. We analyze conditions under which switchbacks can be effective in enabling the entrepreneur’s ideal commercialization strategy given the attending costs, risks, and likely incumbent response.

Copyright/Permission Statement

© 2015. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

commercialization strategy, dynamic strategies, technology licensing

Embargo Date

8-2018

Available for download on Wednesday, August 01, 2018

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Date Posted: 19 February 2018

This document has been peer reviewed.