Perspective - (2023) Volume 14, Issue 1
Received: 03-Jan-2023, Manuscript No. bej-23-94534;
Editor assigned: 05-Jan-2023, Pre QC No. P-94534;
Reviewed: 16-Jan-2023, QC No. Q-94534;
Revised: 23-Jan-2023, Manuscript No. R-94534;
Published:
30-Jan-2023
, DOI: 10.37421/2151-6219.2023.14.420
Citation: Haugom, Erik. “Capabilities that Support Small-Firm
Growth: A Framework for Emerging Technology Companies.” Bus Econ J 14
(2023): 420.
Copyright: © 2023 Haugom E. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
We adopt a dynamic-states perspective to investigate how young technology-based firms (YTBFs) can utilise internal capabilities to enable the crucial transitions of their dynamic growth process. We acknowledge the significance of capabilities for growth and the non-linearity of YTBFs' growth trajectories. We propose that such transitions are characterised by three inherent categories of obstacles that YTBFs face during this process: entrepreneurial, orchestration, and legitimation challenges. We contend that YTBFs can benefit from a clearer understanding of which capabilities are essential for and what role they may play in addressing these difficulties given the shared liabilities of smallness, newness, and volatility these enterprises face. Six growth-enabling skills are identified using a qualitative, methodical combining approach: learning, absorptive, adaptable, and networking, innovation, and individual capabilities [1].
Small firms play a critical role in the global economy, creating jobs and driving innovation. However, these firms face a range of challenges, including limited access to resources and expertise, and competition from larger, more established firms. To overcome these challenges, small firms need to develop a range of capabilities that can support their growth and success. One key capability that supports small-firm growth is innovation. Innovation is critical for small firms because it enables them to differentiate themselves from their competitors and create new opportunities for growth. Small firms can innovate in a range of areas, from product development to marketing and customer service [2].
Another capability that supports small-firm growth is agility. Small firms need to be able to quickly adapt to changes in the market and respond to new opportunities and challenges. This requires a culture of agility and a willingness to experiment and take risks. Access to resources is also critical for small-firm growth. Small firms may lack the financial resources and expertise needed to develop new products, expand into new markets, or invest in new technology. However, they can overcome these challenges by leveraging external resources, such as partnerships with larger firms or government support programs [3].
Another important capability for small-firm growth is customer-centricity. Small firms need to be focused on meeting the needs of their customers, developing strong relationships with them, and providing excellent customer service. This requires a deep understanding of customer needs and preferences, as well as the ability to deliver products and services that meet those needs. Networking and collaboration are also critical capabilities for small-firm growth. Small firms can benefit from developing strong relationships with other firms, both large and small, as well as industry associations and other business networks. These relationships can provide access to new markets, customers, and resources, as well as opportunities for learning and sharing best practices [4].
Finally, leadership and management capabilities are critical for small-firm growth. Small firms need leaders who can set a clear vision and strategy, inspire and motivate employees, and make effective decisions in the face of uncertainty and complexity. They also need managers who can effectively allocate resources, manage risk, and execute on the firm's strategy.
In summary, small firms face a range of challenges that can make it difficult for them to grow and succeed. However, by developing a range of capabilities, including innovation, agility, customer-centricity, access to resources, networking and collaboration, and leadership and management, small firms can overcome these challenges and achieve long-term success. By investing in these capabilities, small firms can differentiate themselves from their competitors, build strong relationships with customers and partners, and create new opportunities for growth and innovation.
Emerging technology companies face unique challenges as they navigate the complex and rapidly changing landscape of the technology industry. To successfully grow and scale, these companies need to develop a framework that can help them navigate these challenges and capitalize on emerging opportunities. One key element of a successful framework for emerging technology companies is a clear and compelling vision. Companies need to define their vision and communicate it effectively to stakeholders, including employees, investors, and customers. A clear vision can help companies attract talent, secure funding, and build a strong brand identity [5].
Another important element of a successful framework for emerging technology companies is a focus on innovation. Emerging technology companies need to constantly innovate to stay ahead of the competition and capture new opportunities. This requires a culture of experimentation and a willingness to take risks, as well as the ability to quickly pivot and adapt to changing market conditions. Access to resources is also critical for emerging technology companies. These companies may require significant investment in research and development, as well as access to talent and infrastructure. To address these challenges, emerging technology companies can leverage external resources, such as partnerships with larger companies, government grants, and incubators or accelerators.
A strong focus on customer needs is also critical for emerging technology companies. These companies need to understand the needs and pain points of their target customers and develop products and services that address those needs. This requires a deep understanding of the market and the ability to collect and analyse data on customer behaviour and preferences. Effective marketing and branding are also critical elements of a successful framework for emerging technology companies. These companies need to build a strong brand identity that resonates with their target customers and sets them apart from the competition. This requires a focus on building relationships with customers and creating a strong online presence through social media, content marketing, and other digital marketing channels.
Finally, emerging technology companies need to build strong teams that can execute on their vision and drive growth. This requires a focus on talent acquisition and development, as well as the ability to foster a culture of collaboration and innovation. Companies need to invest in their employees and provide them with the resources and support they need to succeed.
In summary, emerging technology companies need to develop a comprehensive framework that can help them navigate the challenges of the technology industry and capitalize on emerging opportunities. This framework should include a clear and compelling vision, a focus on innovation, access to resources, a strong customer focus, effective marketing and branding, and a strong team culture. By investing in these elements, emerging technology companies can position themselves for long-term success and growth.
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