The Network Embeddedness of New, Technology-Based Firms: Developing a Systemic Evolution Model

Helena Yli-Renko and Erkko Autio

Small Business Economics, 1998, vol. 11, issue 3, 253-67

Abstract: The present paper focuses on the interactive relationship between new, technology-based firms and their network environment. The paper analyzes the mechanisms through which new, technology-based firms become immersed in innovation and manufacturing networks. The concept of embeddedness is developed and used to depict such mechanisms. A systemic evolution model of new, technology-based firms is proposed. The model depicts the evolution of new, technology-based firms in manufacturing and innovation networks. The model emphasizes the catalyzing role of new, technology-based firms in national systems of innovation. Network embeddedness is empirically explored in five case studies of Finnish new, technology-based firms. The systemic evolution model serves as an interpretative scheme for the case studies. The analysis of the organic relationship between new, technology-based firms and their systemic environment also serves to reveal the implications of embeddedness for new, technology-based firms. Copyright 1998 by Kluwer Academic Publishers

Date: 1998
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