Growth paths of small technology firms: The effects of different knowledge types over time

The study explores the interdependence among the different types of knowledge of a firm and the strategies it employs to grow over time, using longitudinal evidence from five small technology firms. The findings suggest that differences in the strategies undertaken arise from differences in small firm's knowledge configuration. Combining technology knowledge with market knowledge is instrumental for the introduction of novel products that will pave the way to internationalization. International knowledge, in turn, is a necessary condition for small firms to accelerate their international expansion while also enhancing their ability to diversify their activities into new fields. Capturing the interdependent effects of different knowledge types over time, the study points towards an evolutionary relationship between knowledge and growth. Specific knowledge configuration drives the selection of strategies, which evoke the reconfiguration of knowledge that triggers changes in the strategies, eventually formulating small firm growth paths.