Technology-Based Competitive Advantages of Young Entrepreneurial Firms: Conceptual Development and Empirical Exploration

Abstract

We explore the factors that contribute to the technological distinctiveness of young entrepreneurial firms. We claim that a young firm's technological distinctiveness is partly the result of entrepreneurs and their orientations toward uncertainty. In certain locations, however, young firms have more means to invest in their technology base. We integrate these two perspectives together, and provide an original explanation and understanding of the technological distinctiveness of young entrepreneurial firms. Our empirical observations among Finnish firms give support to our main hypotheses and therefore highlight the factors that contribute to technology-based competitive advantage of young firms.