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Alliances and legitimacy among technology-based start-ups

Alliances and legitimacy among technology-based start-ups Technology based start-up firms have historic importance as outlets for new technology product. A major challenge for start-ups commercialising inventions is to attract enough external resources until they achieve mainstream market acceptance for new technology products. Lack of performance history and novel technologies combine to create liabilities that they must overcome to gain legitimacy in the eyes of stakeholders and gain access especially financial resources. This makes strategies to increase legitimacy and reduce the likelihood for failure among technology-based start-ups (TBS) a persistent pursuit in entrepreneurship research with strong implications for practice. Forging alliances with important stakeholders show relevance and indicate legitimacy. Using data from 173 start-ups working with energy efficient technologies, this analysis found evidence to suggest that forging alliances and the public declaration of these can influence legitimacy among TBS. The influence however, it not straight forward and has implication for both research and practice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Technoentrepreneurship Inderscience Publishers

Alliances and legitimacy among technology-based start-ups

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1746-5370
eISSN
1746-5389
DOI
10.1504/IJTE.2020.113918
Publisher site
See Article on Publisher Site

Abstract

Technology based start-up firms have historic importance as outlets for new technology product. A major challenge for start-ups commercialising inventions is to attract enough external resources until they achieve mainstream market acceptance for new technology products. Lack of performance history and novel technologies combine to create liabilities that they must overcome to gain legitimacy in the eyes of stakeholders and gain access especially financial resources. This makes strategies to increase legitimacy and reduce the likelihood for failure among technology-based start-ups (TBS) a persistent pursuit in entrepreneurship research with strong implications for practice. Forging alliances with important stakeholders show relevance and indicate legitimacy. Using data from 173 start-ups working with energy efficient technologies, this analysis found evidence to suggest that forging alliances and the public declaration of these can influence legitimacy among TBS. The influence however, it not straight forward and has implication for both research and practice.

Journal

International Journal of TechnoentrepreneurshipInderscience Publishers

Published: Jan 1, 2020

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