Using Web Images as a Measure for New Venture Technology Strategy

Abstract

The knowledge-based literature highlights the importance of external knowledge sources in the recognition and exploitation of technology-based opportunities by new ventures. However, previous literature has had difficulty describing how external knowledge is integrated and then deployed to gain competitive advantage. In addition, the primary insight into this phenomenon is managerial perception which, while valuable, has limitations due to the inherent cognitive biases associated with survey and interview methodology. Therefore, I introduce a novel content analysis variable called image ratio, which complements managerial perception data. Image ratio interprets website images to demonstrate how new venture technology strategy interacts with the context in which these ventures are embedded. I find that technology strategy alone is not a significant factor in new venture product introduction, but it does become significant when interacting with a related institutional context. I use logistic panel regression techniques to analyze 138 new robotics ventures between 2007–2012. I find that militarization as the institutional context of interest is negatively related to product introduction and that militarization also positively moderates the relationship between technology strategy and product introduction. These findings bridge the gap between micro strategy research and macro organization theory by empirically investigating the interaction between context and the strategy of embedded new technology ventures.