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International Small Business Journal
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Exploring Social Dynamics in Technological Innovating

A Case of Early Phases in a Chemical High-tech Firm

Sari Yli-Kauhaluoma

Helsinki School of Economics, Finland, Sari.Yli-Kauhaluoma{at}hse.fi

This study explores the crossroads of entrepreneurship and innovating. In particular, it aims to identify the types of social dynamics that take place as entrepreneurs seek to commercialize a high-tech invention in the early phases of a new venture. The empirical case focuses on an analysis of a group of scientist-entrepreneurs and the development of their social relations with representatives in several large, established organizations as they jointly develop and apply a chemical invention in an industrial process. As a result, the study identifies and specifies five different types of social dynamics crucial for entrepreneurs in the development of industrial innovations in the early phases of a firm's existence. The study highlights the importance for new entrepreneurs of gaining access to industrial projects. Also, the results discuss the intensity of collaborative relations and raise issues regarding power in social dynamics.

Key Words: chemical technology • innovating • new venture formation • social dynamics • transition phase

International Small Business Journal, Vol. 27, No. 4, 442-469 (2009)
DOI: 10.1177/0266242609335021
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