Profitability of small- and medium-sized enterprises in high-tech industries: the case of the biotechnology industry

• Published in: Strategic management journal Vol. 24; no. 9; pp. 881 - 887
• Main Authors: Qian, Gongming, Li, Lee
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 01.09.2003; John Wiley and Sons; Wiley; Wiley Periodicals Inc
• Subjects: Applied sciences; Biotechnology; Biotechnology industry; Business innovation; Business structures; Competition; Consumer goods industries; Corporate profits; Corporate strategies; Cost control; Cost reduction; Costs; Economies of scale; Employees; Enterprises; Exact sciences and technology; Firm modelling; Globalization; High tech industries; High technology; High technology industries; Hypotheses; Industrial market; Industry; Innovations; Literature reviews; Management science; Operational research and scientific management; Operational research. Management science; Product development; Product innovation; Product life cycle; Production capacity; Profitability; Research Notes and Commentaries; Small & medium sized enterprises-SME; Small and medium sized enterprises; Small business; Studies; Technological innovation; United Kingdom > UK; profitability; high-tech industries; small- and medium-sized enterprises
• ISSN: 0143-2095; 1097-0266
• DOI: 10.1002/smj.344

This paper investigates the profitability determinants of small- and medium-sized enterprises in high-tech industries. Literature review suggests that innovator position, market awareness, niche operation, and internationalization should have positive impacts on SMTEs' profitability. However, the empirical results partially agree with, and partially dissent from, the propositions.