Research Of New Venture Strategies And Growth Patterns

Innovation and entrepreneurship have become the important means ofeconomic development and absorbed the attention of the world. But the studyof entrepreneurship in our country mostly focused on the phenomenon andbehavior of entrepreneurship instead of systemic and deeply analysis,especially in the study about the path of growth and international of newventure.We can understand more clearly about the growth pattern of the newventure to analysis the choice and change of competitive strategy through itsgrowth. At first this paper summarized the correlative theory about newventure's technologic strategy, internationalization strategy and industrialentrence strategy. So we abserved three characters of the new venture throughthe summarization above, Target market(local vs. global), product/marketmaturity (existing vs. emerging), and level of technological capability(follower vs. pioneer) and use them as key dimensions to classify competitivestrategies of new ventures in the process of seeking business opportunities.Based on five successful Chinese new venture cases, we found the differentgrowth and internationalization patterns and the factors those effect on thispatterns.From our case studies, we got two different growth patterns: growththrough strategic replication and growth through strategic change. Thesedifferences come from whether new ventures are pursuing a similar strategyover time or different strategies. In the internationalization of new ventures,we found the creative imitation type played an important role as astepping-stone and a milestone for globalization.Finally, this paper analysised the factors those determined the growthpatterns of new venture. Growth patterns of successful new ventures varyaccording to: (1) initial conditions facing firms at the time of founding,especially the entrepreneurs' characteristics and management abilities (2)technology strategy to develop and accumulate technological capability, and(3) outside environmental factors, such as capital market, revenue policy,industrial protection and technological promotion policy, etc.