Joseph E. Coombs

Measuring Technological Capability and Performance

The relation between technological capability and firm performance is more complex than what is generally assumed. Researchers have not been able to consistently find empirical support for this apparently simple relation. The objective of this study is to illustrate the theoretical and empirical complexity of this relation and explain why the use of different measures can lead to dramatically different results. In this study, we analyse the technological capabilityperformance relation in 201 large US public manufacturing companies. A variety of patent statistics and a measure of research & development (R&D) intensity are used as indicators for technological capability. The following six measures of performance are used as dependent variables: return on assets, return on equity, return on sales, market value, market value added, and economic value added. The results vary substantially, depending on which measures are used for the independent and dependent variables. A detailed understanding of precisely what each measure represents and the shortcomings of each measure is needed to explain why these differences exist. We conclude by discussing the effectiveness of a variety of technological capability measures using patent citations, and illustrate why a measure of R&D spending and the total number of patents are usually not valid measures of a firms technological capability.

The development of venture-capital-backed internet companies: An ecosystem perspective

Abstract The current paper uses an “environmental ecosystem” perspective to explore the development of the Internet sector. The findings suggest that different geographic regions possess different ecosystem qualities that benefit some Internet sectors and not others. For example, Internet hardware seems concentrated in northern California; Internet software in the Southwest; and some evidence that e-commerce and content is concentrated in the Rocky Mountains. We also found that the development of the Internet sector is iterative with Internet software companies developed first followed by Internet Infrastructure, Internet hardware, Internet service providers, and finally e-commerce companies.

Theory and Methodology in Entrepreneurship Research

Entrepreneurship remains a young scholarly discipline characterized by low paradigmatic development. Herein, we discuss theoretical and methodological issues associated with this rapidly emerging yet still developing research area. We argue that theory and methodology are symbiotic components of research and should develop concurrently in order to support the evolution of a paradigm for entrepreneurship research. Further, we posit that effective growth of entrepreneurship research will occur as a result of appropriately extending theory and methods from other scholarly disciplines as well as from theoretical and methodological innovations that are unique to entrepreneurship. Based on the positions taken in this chapter, we also advance recommendations for scholars to consider as work is completed to develop a systematic body of knowledge about entrepreneurship.

The Power and Effects of Entrepreneurship Research

This study summarizes and analyzes average statistical power and effect sizes in empirical entrepreneurship research. Results show that statistical power was higher than expected, and was particularly high in studies employing archival measures. Statistical power has also increased over time. Effect sizes were higher than expected, a finding that remained consistent for different levels of analysis and across multiple subdomains. We discuss these findings, compare them to related disciplines, and draw implications for the design of future studies.

The impact of different forms of IPO firm legitimacy on the choice of alliance governance structure

We analyze the effects of four different types of firm legitimacy - managerial, technological, local community legitimacy and business press endorsement - on the choice of alliance governance structure in partnerships with newly public biotechnology firms. We expand current research to differentiate between non-equity, minority equity and joint venture alliance structures. We find that IPO firms with higher levels of managerial legitimacy and local community legitimacy are more likely to enter into joint ventures than minority equity alliances and non-equity alliances. IPO firms with higher technological legitimacy and business press endorsement are more likely to use a less hierarchical governance structure.

Bureaucratic Systems' Facilitating and Hindering Influence on Social Capital

This study demonstrates how banks’ bureaucratic systems (i.e., formalization, management continuity, customer orientation) are associated with social capitals relational and cognitive dimensions. We collected survey data from a matched sample of 884 small– and medium–sized enterprises (SME) executives and 217 bank managers across 22 banks to test hypothesized relationships. Our results showed that formalization is negatively associated with both dimensions of social capital, while management continuity and customer orientation are positively associated with them. These results are a first step in answering calls in the literature to study bureaucratic systems’ influence on social capital. Theoretical and future research implications are discussed.

Stakeholder Treatment Amongst IPOS and the Acquisition of Resources for Entrepreneurial Ventures

Entrepreneurs bring together the various stakeholders necessary to create new products and services; however, stakeholders face a high level of uncertainty when determining whether to invest their resources in the venture. This paper draws from signaling theory and stakeholder theory to explain how firms that have reputations for outstanding treatment of stakeholders send a signal to potential resource investors that reduces the uncertainty they perceive to be associated with the venture. Perceived uncertainty is reduced because of an enhanced ability to acquire necessary resources, a smaller probability that unexpected events will occur, an increased ability to plan for changes that do occur in the external environment, and the possibility that the strong stakeholder network itself may be a source of sustainable competitive advantage for the firm. While these ideas are applicable to entrepreneurial ventures at many stages, the context examined herein is firms that are preparing for an initial public offering because they have had sufficient time to establish reputations.

Non-Competition Agreements and Research Productivity in the Biotechnology Industry

This paper examines the impact of the state-level legal structure, namely the legal support for non-competition agreements, on research productivity. Specifically, we study how Californias unique lack of non-competition agreement laws influences product develop when controlling for local munificence and firm-level technological capability. Our results indicate that Californias unique legal structure is negatively associated with research productivity as measured by the number of products in development at the time a biotechnology firm goes public. Further, firm size moderates this relationship such that the effect is stronger for smaller biotechnology firms.