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Do New Technology-Based Firms Located in Science Parks Really Perform

Omolo, Isaiah Ouma
Master thesis
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Year
2011
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http://urn.nb.no/URN:NBN:no-30975

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  • Senter for entreprenørskap [240]
Abstract
This study aims to understand the role of science parks in the performance of New Technology Based Firms (NTBFs). It focuses on the relations between TMT characteristics and innovation speed with regards to their location (i.e. either in Science Park or Off Science Park).

In an attempt to answer the question, whether NTBFs inside SPs perform better than those outside, I look at the TMT characteristics and innovation speed which previous research have shown to have a positive effect on NTBFs performance. I combine the group, Upper Echelons Theory and the Resource Based Theory to investigate the significance of these parameters in relation to the NTBFs location.

By using a combination of resource based theory (RBT) and upper echelons theory (UET), I developed four hypotheses that compare the outcomes of parameters between those NTBFs based in the SPs and those based outside. The parameters are: TMT performance, TMT polychronicity, TMT diversity and innovation speed. The positive relationship between these parameters and firm performance has been widely supported.

I used mainly quantitative research method to collect the data. However, in order to validate the findings, I did face-to-face interviews. For the quantitative research, my sample consisted of 51 Norwegian NTBFs while for the interviews, I had a sample size of 5 (4 Norwegian NTBFs and Oslo Research Centre).

The findings demonstrate that those NTBFs in science parks exhibit higher TMT performance and TMT polychronicity compared to their counterparts outside the Science Parks. Futhermore, the results shows that TMTs in SPs are less diverse than those outside. However, the innovation speed is not dependent on location of the NTBFs but rather on their industry of operation (i.e. biotech or non-biotech). My empirical material has some implications and directions for further research.
 
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