Strategies of Technology Intensive Firms

Abstract

Technology has always been one of the critical factors of development especially in this century when technological changes have taken place quite rapidly leading to major structural changes in the economies of various countries. Over a period of time technology has also become complex in all sectors of the economy. Small and medium enterprises which are found to play a key role in the economies of most countries also account for large number of high-technology firms (Ookey 1991). Earlier studies on small and medium high-technology firms have largely focused on areas such as product development (Rothwell and Zegveld 1982), marketing (Waiters 1989), and overall performance (Ookey and Rothwell 1986). Several authors have written on the role or high-tech firms in economic development (Reekie 1982), Bollinger, Hope and Utterback 1983), Kenney 1986), Tassey 1991). Some authors (Manimala 1988), Ramachandran and Ramnarayan 1993) have focussed their attention on the role of social networking to raise resources by high-tech firms. Still, no serious attempt seems to have been made to understand the broad management strategies followed by these firms especially in the context of a developing country such as India which is undergoing major structural changes. It is in this background that this study was undertaken of the firms which have consciously chosen new or complex technologies as a strategic variable to enhance their competitiveness. There is no universally accepted definition for high technology except that the higher the technology the more complex it is to master. Reviewing various definitions of high technology, Moriarty and Kosnick (1989) concluded that uncertainties in both technology and market were characteristic of high technology firms. There are also risks and uncertainties involved in the process of development and commercialisation of such complex technologies from the laboratory level upward. It takes time to understand and absorb these technologies. Management of firms which consciously adopt this route to commercial growth is therefore extremely challenging. The strategies they follow are indicative of the potential of such high quality innovative entrepreneurs.