Entrepreneur, environment, strategy, structure, and performance changes of high-tech ventures

Generally high-tech ventures have few resources with which to withstand unpredictable environmental jolts. Therefore environmental changes may have severe effects on the performance of high-tech ventures. Unfortunately previous empirical studies for predicting the performance of ventures hardly deal with such dynamic changes of performance. We try to examine the performance changes of ventures through a longitudinal study before and after severe environmental changes, namely IMF Bailout Memorandum. For the empirical study, we classified venture firms into four types based on entrepreneur's assessment of their performance changes and investigated how these four types differ in characteristics of entrepreneurs, environment, strategy, and organizational features. We found that differentiation strategies, fit between strategy and environmental changes, entrepreneur's trust and activities such as networking and knowledge accumulation about customers, and decentralized organizational structure were important to the performance changes of high-tech ventures.