Digital Technology Search and New Venture Performance in Dynamic Environments

Technology search is crucial to establishing competitive advantage and improving firm performance. However, it is still unclear how different technology search strategies affect competitive advantage and performance at the firm level and how to determine technology search strategies in dynamic environments. Therefore, based on resource-based theory, this study explores the relationship between digital technology search, competitive advantage, and new venture performance (NVP) in dynamic environments with a sample of 267 Chinese new ventures. The results show that the breadth and depth of digital technology search positively affect NVP. Environmental dynamism weakens the positive effect of digital technology search breadth on NVP but strengthens the positive relationship between digital technology search depth and NVP. Moreover, digital technology search breadth affects NVP via differentiated competitive advantage, and digital technology search depth affects NVP through differentiated and cost-leadership competitive advantage. Finally, implications and limitations are discussed.