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Title

Radical business strategy change in high technology new ventures: taking the investor's perspective

Author(s)

Gimmon, Eli;  Benjamin, Eyal;  Katzenstein, Liora

Abstract

Radical Strategic Change (RSC) is not a rare event in high technology new ventures, due to their rapidly changing environment. This research explores investors' perspective regarding RSC in their portfolio companies, using a qualitative study by interviewing a variety of 13 financial investors from 7 countries. Findings present three approaches taken by investors: Avoidance, Readiness and Passive. Since the success of RSC is critical to ventures performance, it is suggested that inventors adopt the readiness approach, optimized also through the prisoners' dilemma as reflecting the investor-investee relationship. Further research is needed to validate findings of this study.

Publication type

Conference paper

Research centre

Swinburne University of Technology

Source

Proceedings of Regional Frontiers of Entrepreneurship Research 2008: 5th International Australian Graduate School of Entrepreneurship (AGSE) Entrepreneurship Research Exchange, Melbourne, Victoria, Australia, 05-08 February 2008 / L. Murray Gillin (ed.), pp. 683-696

Publication year

2008

FOR Code(s)

150304 Entrepreneurship;  150307 Innovation and Technology Management

Keyword(s)

Entrepreneurship;  High technology ventures;  Investors;  Radical Strategic Change (RSC)

Publisher

Australian Graduate School of Entrepreneurship, Swinburne University of Technology

ISBN

9780980332834, 0980332834

Publisher URL

http://www.swinburne.edu.au/lib/ir/onlineconferences/agse2008/papers.htm

Copyright

This paper copyright © 2008 Eli Gimmon, Eyal Benjamin and Liora Katzenstein. Proceedings copyright © 2008 Australian Graduate School of Entrepreneurship. Published version of this paper reproduced with the kind permission of the publisher.

Full text

Peer reviewed