Choosing Technology: An Entrepreneurial Strategy Approach

Joshua Gans, Michael Kearney (), Erin L. Scott () and Scott Stern ()
Additional contact information
Michael Kearney: Massachusetts Institute of Technology, Cambridge, Massachusetts 02139;
Erin L. Scott: MIT Sloan School of Management, Cambridge, Massachusetts 02142
Scott Stern: National Bureau of Economic Research, Cambridge, Massachusetts 02138; and MIT Sloan School of Management, Cambridge, Massachusetts 02142

Strategy Science, 2021, vol. 6, issue 1, 39-53

Abstract: A central premise of research in the strategic management of innovation is that start-ups are able to leverage emerging technological trajectories as a source of competitive advantage. But, if the potential for a technology is given by the fundamental character of a given technological trajectory, then why does entrepreneurial strategy matter? Or, put another way, if the evolution of technology is largely shaped by the strategic choices entrepreneurs make, then why do technological trajectories exhibit systematic patterns such as the technology S-curve? Taking a choice-based perspective, this paper illuminates the choices confronting a start-up choosing their technology by resolving the paradox of the technology S-curve through a reformulation of the foundations of the technology S-curve. Specifically, we reconceptualize the technology S-curve not as a technological given but as an envelope of potential outcomes reflecting differing strategic choices by the entrepreneur in exploration versus exploitation. Taking this lens, we are able to clarify the role of technological uncertainty on start-up strategy, the impact of constraints on technological evolution, and how technology choice is shaped by the possibility of imitation. Our findings suggest that staged exploration may stall innovation as a result of the replacement effect, increasing the strategic importance of commitment.

Keywords: technology strategy; technology and innovation management; innovation management; entrepreneurial strategy; entrepreneurship; exploration; exploitation (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://doi.org/10.1287/stsc.2020.0115 (application/pdf)

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Working Paper: Choosing Technology: An Entrepreneurial Strategy Approach (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orstsc:v:6:y:2021:i:1:p:39-53

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