Do relationships facilitate growth in small technology firms?
by Mika Westerlund; Risto Rajala; Seppo Leminen; Diane A. Isabelle
International Journal of Technoentrepreneurship (IJTE), Vol. 3, No. 3, 2017

Abstract: Prior literature argues that business relationships provide firms with competitive advantage. However, there is a need for more empirical evidence on whether and how they influence the growth of small technology firms. Through a statistical analysis of 90 small technology firms in Finland, we explore whether the scope and scale of customer relationships and the level of networking with partners can be associated with the financial growth of a firm. The results show that the growth of operating income in small technology firms is linked with their scale of customer relationships; i.e., growth firms employ a broader scale of customer relationships compared to non-growth firms. Hence, we suggest that focusing on deeper relationships with few customers may hamper the firm's financial growth, and entrepreneurs and managers of small technology firms should aim at a broader customer base even in niche markets.

Online publication date: Sat, 22-Apr-2017

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technoentrepreneurship (IJTE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com