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Manufacturing Strategy and New Venture Origin: an Empirical Analysis

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Abstract

This research addresses key elements in the manufacturing strategy of 64 new venture firms in the computer and communications industries. More specifically, the research is focused on manufacturing strategy differences between new ventures initiated by existing firms and new ventures initiated by entrepreneurs. Questionnaire and personal interview data were analyzed via a discriminant analysis approach. The research reveals that significant differences in manufacturing posture do exist as a function of new venture origin, i.e. there is a statistically significant difference between corporate sponsored and independent new venture firms in terms of key manufacturing strategy variables.

The study suggests that independent new ventures compete through superior product quality, using in-house manufacturing technology. Products are directed to a few large customers, and new product development is not a primary issue. Corporate sponsored ventures are less concerned with superior product quality, but place a greater emphasis on product manufacturing technology, new product development and sub-contracting.

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© 1990 Kluwer Academic Publishers

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Dsouza, D.E., McDougall, P.P., Deane, R.H. (1990). Manufacturing Strategy and New Venture Origin: an Empirical Analysis. In: Ettlie, J.E., Burstein, M.C., Fiegenbaum, A. (eds) Manufacturing Strategy. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2189-4_14

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  • DOI: https://doi.org/10.1007/978-94-009-2189-4_14

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7481-0

  • Online ISBN: 978-94-009-2189-4

  • eBook Packages: Springer Book Archive

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