MANUFACTURING STRATEGY AND BUSINESS ORIGIN OF NEW VENTURE FIRMS IN THE COMPUTER AND COMMUNICATIONS EQUIPMENT INDUSTRIES

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Abstract
With the use of questionnaire data from owners, presidents, CEOs, and chairmen of boards and a logistic regression approach, we analyzed the manufacturing strategies of 64 new‐venture firms in the computer and communications equipment manufacturing industries. We found statistically significant differences in manufacturing posture as a function of whether the new venture was corporate‐sponsored or independent (i.e., new venture origin). The findings suggest that independent firms attack the market with superior product quality with the use of technology in the public domain. They offer a narrow range of products directed to a few large customers and do not make developing new products a primary issue. In contrast, corporate‐sponsored tirms are less concerned with superior product quality but emphasize patented technology and new product development. They provide a broader range of products and service smaller customer orders.

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