BUSINESS AND TECHNOLOGY STRATEGIES AND NEW VENTURE PERFORMANCE - A STUDY OF THE TELECOMMUNICATIONS EQUIPMENT INDUSTRY

In this paper, a set of hypotheses relating competitive and cooperativ e business strategies and technology strategies to new venture perform ance are developed. These hypotheses are tested using data collected f rom the Initial Public Offering (IPO) documents of a sample of 52 new ventures in the telecommunications equipment industry. This industry h as experienced a great deal of technological change as computer and te lephone technologies have merged allowing a variety of new ventures to successfully enter the industry. The results suggest that new venture s pursuing broad cost leadership strategies were more successful. Inve stments in innovation in terms of relative R&D expenditures were also related to higher performance. Finally, significant interaction effect s between investments in innovation and competitive strategies and per formance were found.