Jan Brinckmann

Financial Management Competence of Founding Teams and Growth of New Technology-Based Firms

This article draws on the resource–based view to analyze the role founding teams’ financial management competencies play for firm growth. Prior research stressed the importance of acquiring external financial resources. In this study, we broaden the understanding of financial management in new firms. We explore the relevance of strategic financial planning competence, external financing competence, competence in financing from cash flow, and controlling competence of entrepreneurial teams for the growth of new technology–based firms. A total of 212 founding teams provided self–assessments of their financial management competencies at start–up. We apply the partial least squares approach to determine the effects of the different financial management competencies on firm growth.

Functional Management Competence and Growth of Young Technology-Based Firms

Acknowledging an increased research interest into the success factors for young technology-based firms in the last decade, the present study serves two main purposes. First, we aim at developing a comprehensive concept of functional management competence in young technology-based firms. Functional management competence covers the understanding of and proficiency in managing specific functional tasks (Katz, 1974). As we focus on young technology-based firms, it is suggested that marketing, financial and technology management tasks are at the core of functional management competence. Second, we aim at delineating and validating an appropriate measurement model for functional management competence. In order to test the models nomological validity, we investigate the impact of functional management competence on firm growth. Therefore, building on established firm development approaches, we propose a phase model for the development of young technology-based firms. Our study builds upon data from 212 young technology-based firms in the field of microtechnology, nanotechnology, electronics, optics and lasers. We use formative measurement models to establish valid and reliable constructs and a path model based on partial least squares modelling to investigate the performance effects. The results suggest that functional management competences generally are significant drivers of firm development speed. In particular, technology and marketing management competences are shown to impact development speed. While technology management competence is positively driving development speed, the marketing management competence impact on speed is mediated by competitive advantage of the new products developed by young technology-based firms. Financial management competence has no significant link to firm development speed.

Composition of Founding Teams and Growth of Academic Spin-offs

This paper investigates how the composition of the founding team at start-up affects the development of academic spin-offs. Using a human capital approach, the overall size of the founding team as well as the teams functional human capital in the technology, marketing, and technology management domain are linked to employment and sales growth of the new ventures. The relationships are analyzed with a sample of 48 academic spin-offs from universities or research institutions. Findings reveal that the founding team size has a negative effect on growth, while the number of team members with a technology management background positively influences firm development. Human capital in the marketing and financial management domain at start-up does not impact development of the firms.

Funktionale Managementkompetenzen und Entwicklungsgeschwindigkeit junger Technologieunternehmen

In den letzten Jahren ist das Interesse von Forschung und Praxis an Erfolgsfaktoren des Managements junger Technologieunternehmen stetig gewachsen. Bei der Untersuchung solcher Erfolgsfaktoren wurden bisher die Kompetenzen des Fuhrungsteams weitgehend vernachlassigt. Dieses Forschungsdefizit aufgreifend, verfolgen wir mit unserer Untersuchung vor allem zwei Ziele. In einem ersten Schritt wollen wir ein umfassendes Konzept zur Bestimmung funktionaler Managementkompetenzen von Fuhrungsteams in jungen Technologieunternehmen entwickeln. Dabei fokussieren wir unsere Betrachtungen auf kaufmannische Kompetenzen, Technologiemanagement- und Marketingmanagement-kompetenzen. Darauf aufbauend wollen wir in einem zweiten Schritt ein angemessenes Messmodell fur diese Kompetenzdimensionen entwickeln. Zur Uberprufung der nomologischen Validitat dieses Modells untersuchen wir den Einfluss der drei Kompetenzarten auf die Entwicklungsgeschwindigkeit junger Technologieunternehmen (JTUs). Die Entwicklungsgeschwindigkeit leiten wir aus einem fur diese Arbeit konzipierten Entwicklungsmodell ab, anhand dessen sich das Entwicklungsstadium der JTUs spezifizieren lasst. Unsere Untersuchung der Zusammenhange zwischen den Managementkompetenzen des Fuhrungsteams und der Entwicklungsgeschwindigkeit von JTUs bezieht sich auf einen Datensatz von 212 JTUs aus den Bereichen Mikro-, Nano- und Biotechnologie, Optik und Elektronik.