TY - CHAP
T1 - Survival and growth of high-tech SMEs: some uncommon strategies
AU - Vyas, Vijay
PY - 2009
Y1 - 2009
N2 - Innovation, by its very nature, disrupts the equilibrium of a competitive market and causes uncertainty. To confront it, the enterprise must innovate further. This competition driven innovation (Cantner et al., 2004), which is central to technical progress and responsible for keeping large corporations vibrant, however, creates peculiar difficulties for the new firm. As R&D budgets burgeon and technical change accelerates, innovation becomes even more focused and competitive. Markets take unanticipated paths hammered by the onslaught of innovators. New products spring up and disappear before people have a chance to look at them and the inventors have time to exploit the gains of their creation. The scale of creative destruction wrought by entrepreneurs trying to break into rival markets using innovative edge of their products and processes has been, of late, growing increasingly discomforting. No wonder, the closure rates are mounting and the steady advancements in knowledge continue to leave behind entrepreneurial mass graves. It seems, the new enterprise in the next century is going to awaken to a competitive reality that is both overwhelming and scary. Entrepreneurs everywhere are now facing the classic Schumpeterian competition, the one that strikes not at the margin of profits and output, but at their very lives. Though the technical innovations of the past decades have opened up a whole gamut of opportunities for start-ups, they have also, sharpened the edge of competition and have increased its ability to mop down the relatively inefficient. As efficiency standards rise, survival becomes increasingly difficult for new enterprises. Effective management and exploitation of change of this magnitude and complexity is extremely difficult. Under such intense uncertainty, there seems to be no guarantee of payoffs from any programme to improve technology (Metcalfe, 1997).
AB - Innovation, by its very nature, disrupts the equilibrium of a competitive market and causes uncertainty. To confront it, the enterprise must innovate further. This competition driven innovation (Cantner et al., 2004), which is central to technical progress and responsible for keeping large corporations vibrant, however, creates peculiar difficulties for the new firm. As R&D budgets burgeon and technical change accelerates, innovation becomes even more focused and competitive. Markets take unanticipated paths hammered by the onslaught of innovators. New products spring up and disappear before people have a chance to look at them and the inventors have time to exploit the gains of their creation. The scale of creative destruction wrought by entrepreneurs trying to break into rival markets using innovative edge of their products and processes has been, of late, growing increasingly discomforting. No wonder, the closure rates are mounting and the steady advancements in knowledge continue to leave behind entrepreneurial mass graves. It seems, the new enterprise in the next century is going to awaken to a competitive reality that is both overwhelming and scary. Entrepreneurs everywhere are now facing the classic Schumpeterian competition, the one that strikes not at the margin of profits and output, but at their very lives. Though the technical innovations of the past decades have opened up a whole gamut of opportunities for start-ups, they have also, sharpened the edge of competition and have increased its ability to mop down the relatively inefficient. As efficiency standards rise, survival becomes increasingly difficult for new enterprises. Effective management and exploitation of change of this magnitude and complexity is extremely difficult. Under such intense uncertainty, there seems to be no guarantee of payoffs from any programme to improve technology (Metcalfe, 1997).
M3 - Chapter (peer-reviewed)
SN - 9788178299273
T3 - Response Books
SP - 276
EP - 287
BT - Enterprise support systems: an international perspective
A2 - Manimala, M.
A2 - Mitra, J.
A2 - Singh, V.
PB - SAGE Publications Inc.
CY - New Delhi
ER -