Abstract

In technology intensive industries, previous research has shown that technological resources play a key role in the success of firms (e.g. Zahra, 1996). Technological resources differ in degree of ‘tacitness’ (Saviotti, 1998) and degree of ‘complexity’ (Marsili, 2002). We extend previous research by arguing that the influence of tacitness and complexity on firm performance is dependent on 1) the market readiness of the technology at founding and 2) firm age. Market readiness represents the extent to which the technology is developed into a marketable entity (Knockaert et al, 2010) while organizational age represents the stock of capabilities and knowledge accumulated over time (Huber, 1991). We propose that market readiness and organizational age will dampen the negative influence of tacitness and complexity on firm performance.

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