New technological ventures: is success preordained?

The authors present a longitudinal study of 15 ventures, to identify important differences in the management characteristics and processes between successful and unsuccessful companies. The 15 are a stratified sample from a database of 68 on which the authors have detailed data from the original business plans. Management turnover, ability to resolve conflicts, meeting development goals, and other indicators of management behavior did not vary between the successful and unsuccessful firms, nor did adaptability. Once the product was introduced, companies encountering difficult markets adapted quickly by developing new products-but without success. Thus the initial product choice is crucial, and seems to be better if the team which makes it is relatively complete, representing diverse functions