Resource Based Capability and Competitive Strategy of High-Tech Ventures in Kerala

Abstract

The paper examines the impact of resource- based capability and competitive strategy on the performance of high- tech new ventures in Kerala. The resource-based capability was analyzed using the variables managerial capability, technical capability, marketing capability and input sourcing capability of the firm. Competitive strategy was measured by looking into cost strategy, quality strategy, innovation strategy, and customization strategy adopted by the firm. A descriptive research was undertaken to analyze the performance of the ventures. A survey method was administered to collect data from 83 high- tech startups in Kerala. Independent sample t-test, Multiple regression and Cluster analysis were used to arrive at a conclusion. The findings indicate that both resource- based capability and competitive strategy influences the performance of a venture. It was found that the entrepreneurs of profitable ventures exhibit better managerial capability. The results of the cluster analysis show that the entrepreneurs with high performance indicators are customer centric. The innovation strategy and marketing capability adopted by the firm has an impact on the venture performance. The findings suggest that sales, profitability and financial position can be predicted to an extend by the resource- based capability and competitive strategy adopted by the venture. The research work can be used by emerging entrepreneurs, policymakers and incubation managers to develop a framework to improve the performance of startups.