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The relation of internal vs. external strategies to the performance of emerging entrepreneurial high-technology firms in Canada.

This study compares the growth rates of Canadian high-tech firms that take part in collaborative arrangements with the growth rates of those firms that choose an internal strategy for the realization of firm objectives. Patterns of firm stage of growth and arrangement use are also considered. Finally, arrangement purpose, whether primarily for marketing or technology objectives, is studied. The analysis is based on a sample size of 50 firms taken from a survey of electronics firms listed in the Business Opportunities and Sourcing System (BOSS) Directory produced by Industry, Science and Technology Canada. The firms chosen for study were of small to medium size, that is with 1992 sales no greater than $50 Million. Results indicate that medium sized high-tech firms ($1 Million '92 sales \$50 Million) which use collaborative arrangements tend to be smaller and less established, and show a higher rate of growth than those firms that do not use collaborative arrangements. Small firms ('92 sales = $1 Million) show little difference in growth rate between those firms using arrangements and those not using arrangements. Early stage firms were found to make greater use of arrangements than late stage firms. Arrangements were made primarily for marketing purposes, and only secondarily for technological purposes. The limitations of the research are largely related to the small size of the survey sample and the fact that the experimental design does not allow for the showing of a cause and effect relationship between external strategies and firm performance.

Identiferoai:union.ndltd.org:uottawa.ca/oai:ruor.uottawa.ca:10393/6860
Date January 1994
CreatorsFarrell, Cynthia.
ContributorsDoutriaux, Jerome,
PublisherUniversity of Ottawa (Canada)
Source SetsUniversité d’Ottawa
Detected LanguageEnglish
TypeThesis
Format109 p.

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