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COOPERATIVE STRATEGY AND NEW VENTURE PERFORMANCE: THE ROLE OF MANAGERIAL EXPERIENCE

Jeffrey E. McGee

Management Department
508M CBA
University of Nebraska at Omaha
Omaha, Nebraska 68182

Telephone
402-554-3156

Fax Number
402-554-3747

Principle Topics
This study of 105 new high technology manufacturing ventures examined the relationship between the use of various inter-firm (cooperative) activities, the experience possessed by the management teams, and economic performance.

Method
Multiple regression techniques were applied to the results of a questionnaire distributed to 450 new technology-int ensive manufacturing ventures. The sample was drawn from the population of firms completing an IPO between 1980 and 1990. The sample was limited to firms in three hi-tech industries: 1) communication equipment, 2) office and computing machines, and 3) electrical machines and electronic & testing instruments.

Major Implications
The results of this research provide insight into the use of cooperative arrangements in two areas. First it appear that cooperative arrangements were primarily used to gain access to additional technical capabilities and to gain broader market exposure. Secondly. the results support the idea that the level of experience possessed by a venture's management team is associated with the venture's ability to successfully utilize cooperative or inter-fim arrangements. Specifically, the results indicate that the use of marketing and R&D cooperative arrangements were generally associated with higher average sales growth when the management possessed relatively more experience in those two functional areas. Additionally, the use of marketing and R&D cooperative activities were associated with higher average sales growth when the management team possessed relatively more industry experience.

Implications
Relatively more experienced management teams are better able to structure and successfully utilize marketing and R&D cooperative arrangements.

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