The impact of autotelic and dynamic capabilities on the performance of knowledge-intensive, low-tech ventures

Abstract

This article explores the impact of autotelic capabilities on the performance of knowledge-intensive low-tech ventures at start-up stage in terms of initial competitive advantage, survival, growth and innovativeness. It also examines the effect of dynamic capabilities on the performance of these newly-established firms and indicates links among the two types of capabilities. The paper provides evidence that the development of autotelic capabilities can play a significant role in the creation of new knowledge-intensive low-tech ventures. The dimensions of autotelic capabilities, bricolage, improvisational and transcendental capabilities create novel business concepts and establish successful ventures in saturated competitive arenas. Autotelic capabilities act as precursors of dynamic capabilities. The study indicates that low-tech companies that invest and build their strategy on knowledge intensiveness and innovation may develop relatively strong DCs to gain competitive advantage.