Abstract:
The aim of this study is to identify how characteristics of small technology-based firms
(STBFs), their unique combination of internal capabilities, structure, and processes, influence strategy
formulation. Based on qualitative research using multiple case studies supported by semi-structured
interviews, the study’s main results indicate the founder’s technical expertise shapes the business,
mission, and vision. Lack of resources allows limited activities in strategy formulation with few
matching capabilities analyses or benchmarking studies. STBFs favor competitive analysis almost
exclusively in developing a market positioning strategy without regard for other methods.
