Research On The Choice Of The Market Entry Strategy Of The New Technology Venture

As an important way for the commercialization of scientific and technological achievements, technology entrepreneurship plays an increasingly important role in the new historical stage of China's reform and opening period. The core of technology entrepreneurship relies on the successful market entrance with new products and services, so as to realize value creation on economic and social dimensions. The market entry strategy is a key determinant of start-up success and value creation. Therefore, clarify the origin and decision-making mechanisms of new technology venture's founding strategy, not only helps to grasp the management focus of entrepreneurial activity, but also improve China's entrepreneuriship structure and upgrade the business skills of technology entrepreneurs.Based on above background, the study takes the new technology venture in founding period as research target and combines the social cognition theory, strategic choice theory and the entrepreneurial process research results as the theoretical base. The study explores how entrepreneurial teams make decision based on their prior experiences and choose the entry strategy, while taking technology assets and environment conditions into consideration.150 copies of questionnaires based on layered random sampling method were used to do empirical examination, using factor analysis and multiple regression analysis etc.With the theoretical development and quantitative analysis, the foundings are showed as follows:First of all, the innovativeness of the market entry strategy improves the new technology ventures' performance as a whole, but it plays different effects on growth-oriented performance and scale-orientated performance. From new venture growth point of view, the innovation on either dimension of product and service or transaction structure, or both dimensions will endow much higher growth potential on new technology venture. With respect of the size of the new venture, innovation on product and service negatively impacts their initial scale. On the other hands, the innovation on transaction structure positively relates to the new venture performance, which will have larger scales on current assets, employee numbers and sales revenues.Secondly, the founding strategy originates from collective cognitive based on entrepreneurial teams'prior experience. This study builds up a founding strategy choice model based on social cognition theory, which is, during the founding period, entrepreneurial teams make decision based on their prior experiences and choose the entry strategy. Specifically, the technology oriented teams tend to enter the market by innovative products or services, while the market oriented teams prefer transaction structure innovation. The heterogeneous team with both technology and market orientation failed to innovate on entry strategy in spite of the multiple cognitive mode.Thirdly, technology appropriability enhanced the innovativess of market entry strategy, but could not change entrepreneurial teams' inherent cognitive model. Besides the main effect of the prior experience and market entry strategy choice, one goes further into the decision process. It finds that technology appropriability play a positive moderating effect.In details, technology orientated team inclines to development more innovative product and service due to higher intellectual property protection mechanism, while market orientated team will enhanced their innovation on transaction structure and the insignificant relationship between heterogeneous team with both technology and market orientation and market entry strategy innovation remains. It means the advantage of technology appropriability do not make entrepreneurial team try new innovation, but only deepen their original cognitive model.Last but not the least, environment munificence change entrepreneurial teams' focus during market entry strategy choice.Due to the scarcity of their initial resource endowments, new venture depend on external resources and its receptivity to support their innovation activities. The study finds out that, under the munificent environment, both the technology and market oriented team fails to innovate on product or service, but commit themselves to the innovation on transaction structure and try to enter the market through new channels.The contributions of the study are showed as follows. First of all, this study explores the genesis and decision mechanism of new ventures' founding strategy, but not only the common questions of which kinds of strategy are more helpful to new venture growth. Based on social cognition and strategy choice theory, one illustrates the critical role of prior experience in strategic decision-making and suggests that key theoretical and empirical evidence from cognitive and social psychology can be generalized to the context of new ventures' strategic decision-making. Secondly, in deal with the multiple dimension of founding strategy, the study focuses on the cause and effect of the market entry strategy. Based on random sample of Chinese new technology venture, the study defines its dimension and consolidates the measurement scale. One examine the applicability of western theory on the market entry perception in China, which will enlighten the comparative study between western and eastern institutional background.Thirdly, this study takes the technology asset and environment factors into market entry strategy choice model and examine their moderating effect, which capture both the internal and external influencing factors and revivifies the real decision process to the largest externt.The structure of the study is showed as follows. Chapter one makes a review about this research's logic clues and key issues, and introduces the study context, contents and methods, and the systematic framework. Chapter two is the part of literature review and showed the theoretical context and theoretical base of the study. Chapter three is the part of theoretical development and model development. Chapter four is the part of research design and process, which reports the tentative research and the random sampling method, variable measurement and statistical analysis method. Chapter five is the part of empirical study, which explores the relationship between the innovativeness of market entry strategy and new venture performance, the entrepreneurial teams'prior experience and its founding strategy choice as well as the moderating effect.Chapter six summarizes conclusions and explains the study's contribution and innovation points in theory and practice aspects, and analyzes the deficiency and the future research around the dissertation issue.