Explaining and measuring success in new business: The effect of technological capabilities on firm results

This paper analyzes the relationship between technological capabilities and firm success. Although literature has recognized that intangibles resources and capabilities are of great strategic potential, there is a noticeable lack of empirical evidence dealing with it, and some methodological issues must be improved. In order to do so, we define this relationship from output and qualitative approaches, directly linking different technological results to firm success. The empirical study was carried out on a sample of Spanish biotechnology firms. Results show that those technological activities oriented to knowledge exploration processes have more potential than those technological capabilities focused on the mere maintenance of a certain competitive advantage. These results support our criticism of certain generally accepted strategic resource evaluation criteria and the need to adopt a contingent view to the study of such issues.