Insecure Advantage? Markets for Technology and the Value of Resources for Entrepreneurial Ventures
By Anand Nandkumar, Ashish Arora
Strategic Management Journal | March 2012
DOI
onlinelibrary.wiley.com/doi/epdf/10.1002/smj.953
Citation
Nandkumar, Anand., Ashish Arora. Insecure Advantage? Markets for Technology and the Value of Resources for Entrepreneurial Ventures Strategic Management Journal onlinelibrary.wiley.com/doi/epdf/10.1002/smj.953.
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Strategic Management Journal, 2012
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Abstract
We empirically study how the value of resources and capabilities for performance are contingent upon the environment. Using a novel dataset of Information Security startups, we study how markets for the supply of technology change the relative value of technology and marketing capability for performance. Consistent with the RBV of the firm, since internal technical effort is a substitute for technology that can be acquired from the market, our results show that greater supply of technology diminishes the value of technical ability. Moreover, since marketing capability is a complement to technology, our results suggest that a greater supply of technology enhances the value of marketing capability.

Anand Nandkumar is an Associate Professor of Strategy, Executive Director of SRITNE at the Indian School of Business (ISB), and Associate Dean of the Centre for Learning and Teaching Excellence. He explores industry and firm-level phenomena that influence innovation - the generation of new ideas, and entrepreneurship - distribution and commercialisation of new ideas. His research focuses on high-technology industries such as pharmaceuticals, biotechnology, and software, and it falls in between industrial organisation (IO), economics of technological change, and strategy.

Professor Nandkumar’s current work in the innovation stream examines the effect of stronger intellectual property rights (IPR) on different aspects of innovation, such as the influence of stronger patents on long run incentives for innovation or the influence of stronger patents on the functioning of Markets for Technology (MFT). In the entrepreneurship stream, his current work examines the influence of venture capitalists on entrepreneurial performance.

Professor Nandkumar graduated with a PhD in Public Policy and Management, with a focus in strategy and entrepreneurship from Carnegie Mellon University in 2008. Prior to his PhD, he worked for 3 years with a startup in Silicon Valley, and prior to that, in New York City with one of the world’s largest financial services firms.

True to his expertise, at ISB, Professor Nandkumar teaches Strategic Innovation Management and Strategic Challenges for Innovation-based startups.

Anand Nandkumar
Anand Nandkumar