The Contextual Characteristics of Finnish and Californian Technology-Based Start-Ups: From Conception and Development to the Edge of Commercialisation

Numerous stage models have attempted to clarify management priorities during the early stages of companies. However, a need for more focused and context-specific studies exists. Context-specific viewpoints and their effect on the early stages of companies have not been widely studied. This study takes context into account and provides new insights into the early growth and management issues of technology-intensive start-ups in the studied contexts. This study explores the early stages of technology-intensive start-ups from conception and development to the edge of commercialisation in Californian and Finnish contexts. To summarise the research questions, the authors ask: How do the experiences of managers in early-stage technology-intensive start-ups relate to assumptions of stage of growth literature? What viewpoints should be considered when using stage framework in Californian and Finnish contexts? To answer these questions, this study devises a framework describing early stages of technology-intensive firms and reflects it through 19 case studies in the two contexts. This is a retrospective multiple case study. Sequential incident technique SIT) and semi-structured interviews were used for data collection. The first stage of the framework was found to be applicable in both contexts. Moreover, an analysis of context-specific viewpoints was provided. These viewpoints were deeply rooted in the characteristics of the Finnish and Californian business ecosystem. It is necessary to recognise the context when using the stages of growth frame in different contexts. The research focus of this study is limited by the context studied, the 19 cases and it is focused on the conception and development stage of business development.