Date of this Version
Strategic Management Journal
This study examined the influence of internal capabilities and external networks on firm performance by using data from 137 Korean technological start-up companies. Internal capabilities were operationalized by entrepreneurial orientation, technological capabilities, and financial resources invested during the development period. External networks were captured by partnership- and sponsorship-based linkages. Partnership-based linkages were measured by strategic alliances with other enterprises and venture capitalists, collaboration with universities or research institutes, and participation in venture associations. Sponsorship-based linkages consisted of financial and nonfinancial support from commercial banks and the Korean government. Sales growth indicated the start-up's performance. Regression results showed that the three indicators of internal capabilities are important predictors of a start-up's performance. Among external networks, only the linkages to venture capital companies predicted the start-up's performance. Several interaction terms between internal capabilities and partnership-based linkages have a statistically significant influence on performance. Sponsorship-based linkages do not have individual effects on performance but linkage with financial institutions has a multiplicative effect with technological capabilities and financial resources invested on a start-up's performance. Implications and directions for future research were discussed.
This is the peer reviewed version of the following article: Lee, C., Lee, K. and Pennings, J. M. (2001), Internal capabilities, external networks, and performance: a study on technology-based ventures. Strat. Mgmt. J., 22: 615–640., which has been published in final form at doi: 10.1002/smj.181. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms.
entrepreneurship, capabilities, social capital, social networks, start-up companies, innovation
Lee, C., Lee, K., & Pennings, J. M. (2001). Internal Capabilities, External Networks, and Performance: A Study on Technology-Based Ventures. Strategic Management Journal, 22 (6-7), 615-640. http://dx.doi.org/10.1002/smj.181
Date Posted: 27 November 2017
This document has been peer reviewed.