Social Capital, Capabilities, and Entrepreneurial Strategies: A Study of Taiwanese High-Tech New Ventures

High-tech entrepreneurship is an important feature inthe world economy. This study examines the effects of social capital,entrepreneur capabilities, and entrepreneurial strategies on the performance ofnew high-technology ventures. Based on the entrepreneurship, resource-based,and strategic management literature, three categories of factors are developedand used for framing hypotheses: entrepreneurs' capabilities, societalcontexts, and entrepreneurial strategic actions. These encompassed management capabilities, technological capabilities,strategic orientation, resource orientation, management structure, rewardphilosophy, growth orientation, entrepreneurial culture, and social capital.Findings were based on survey/interview results from 125 Taiwanese newbiotechnology and integrated circuit design ventures. Findings indicate that high-technology entrepreneurship is a complexphenomenon with a wide range of factors. Management capability has negativeimpact on new venture performance.The six Stevenson entrepreneurialstrategies have different effects on new venture performance; social capital infact moderates the effects of entrepreneurial strategies and resources on firmperformance; and social capital is an asset only when certain entrepreneurialstrategies were adopted. Social capital, entrepreneur capabilities, and entrepreneurial strategiesare found to interact with each other. In short, there is no single path to newventure success or failure. Successful entrepreneurs adapt theirentrepreneurial strategies to their social capital and entrepreneurialcapabilities. (TNM)

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