@article {556,
	title = {Applying the Theory of the Firm to Examine a Technology Startup at the Investment Stage},
	journal = {Technology Innovation Management Review},
	volume = {2},
	year = {2012},
	month = {05/2012},
	pages = {23-27},
	publisher = {Talent First Network},
	address = {Ottawa},
	abstract = {The investment stage of a new technology firm is when resources, opportunities, investors, and early customers first converge. Currently, technology entrepreneurs make many expensive mistakes. They invest in assets and develop capabilities that prove to have limited value. They take too long to discover and validate the product-market fit for their firms during the investment stage and run out of time and money. Understanding how theory can help entrepreneurs make decisions during the investment stage is important to accelerate new-firm formation and growth as well as to reduce the uncertainty of founders and stakeholders of technology firms. 
 
This article introduces a model developed to examine deal making during the investment stage of a new technology firm. It is an extension of a model of lateral firm scope proposed by Oliver Hart and Bengt Holmstrom. The extensions come from considering a technology firm as being both a deal-making entity and a pool of resources during the investment stage. A deal is the result of a decision the entrepreneur and others make to coordinate (i.e., work together to achieve a common objective). Benefits from a deal include cash profits for the firm and private benefits for the entrepreneur. 

This extended model is then applied to examine the author{\textquoteright}s firm which is still in the investment stage. Application of the extended model to a real-life situation generated two important insights: i) when private benefits include learning from experimentation, the number of deals increases and ii) at the start of the investment stage, private benefits drive deal-making, whereas at the end of the investment stage, cash profits derived from asset ownership drive deal-making.
},
	keywords = {deals, investment, technology entrepreneurship, theory of the firm},
	issn = {1927-0321},
	doi = {http://doi.org/10.22215/timreview/556},
	url = {http://timreview.ca/article/556},
	author = {Michael Ayukawa}
}
@article {548,
	title = {How Do Large Companies Manage Their Investments Across the Three Horizons?},
	journal = {Technology Innovation Management Review},
	volume = {2},
	year = {2012},
	month = {04/2012},
	pages = {28-34},
	abstract = {Technical entrepreneurship continues to be important to a technology company{\textquoteright}s health and growth, even after it has successfully delivered its first product. It is essential to help the company deal with competitive forces and to renew its revenue stream. However, as the company grows, its entrepreneurial capability often becomes handicapped both by company culture as well as external pressures. The company must achieve the right mix of investment and level of attention across three time horizons of growth: immediate, imminent, and future. This balancing act requires a commitment to a strategic growth goal, appropriate tools, and leaders that can manage significant degrees of uniqueness in the resources that address each of these time horizons.

This article discusses some of the horizon-management challenges faced by top management teams of large companies and overviews some mechanisms and processes that have worked effectively. Large companies must overcome internal teams{\textquoteright} divergent values and culture as well as significant external, short-term pressures being applied by their existing base of customers and markets. Discipline at the entry point to Horizon 3 (exploratory phase) and then a rapid transition to Horizon 1 (current operations) is the priority of any successful growth company.
},
	keywords = {horizon management, investment, large companies, technology entrepreneurship},
	issn = {1927-0321},
	doi = {http://doi.org/10.22215/timreview/548},
	url = {http://timreview.ca/article/548},
	author = {Peter Carbone}
}
