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Lihong Qian |
Abstract: Liability of Smallness, Entrepreneurial Entry and Technology Evolution in the U.S. Biofuels Industry This study investigates the strategic behavior of entrepreneurial firms that differ in their resources and capabilities, under conditions of technology and demand uncertainty. The context of an emerging industry where uncertainties are undergoing resolution allows the potential capture of the decision making process of firms before entry is made or before post-entry performance differential is manifested. The premise is that the performance of small and entrepreneurial firms critically depends on their ability to develop resources and capabilities that will help them navigate demand and technological uncertainty, particularly when confronted with their liability of smallness. This research will examine this issue in the biofuels industry within the current grain based technological regime as well as when the industry is transformed by the disruptive change caused by introduction of cellulosic technologies. It will explore how small and entrepreneurial firms can perceive and respond efficiently to technological change, compared with those diversifying firms with advantageous complementary resources and capabilities. Surveys, experimental simulations and interviews will be used to determine the role and type of strategic relationships in mitigating the liability of newness. |