well as marketing oriented control of new product idea flow and the resultant development process all contribute significantly to financial success.
Financial managers of these high-technology firms generate higher financial leverage than their electronic industry counterparts, perhaps due to the greater profitability of the sampled firms. Dividends are almost never issued in these hardware companies, all earnings being reinvested toward future growth. No aspect of capital structure helps to explain overall corporate success.
Thirteen of the 21 founding CEOs had already been displaced by new CEOs, the replacements usually being brought in after some set of externally generated "critical events". But the eight surviving original founder-CEOs as a group perform as well as the replacement CEOs. The new CEOs tend to have marketing backgrounds, in contrast with the engineering backgrounds of the first-generation CEOs. The new CEOs dramatically transform their firms toward the marketing-orientation, frequently achieving corporate success by means of that transformation. No additional insights explain the comparable degree of success achieved by the relatively few super-successful surviving founder-CEOs. Their entrepreneurial accomplishments remain as a deep mystery for later researchers to fathom.
|A. Firms That Participated in the Research|
|Analog Devices||Dynatech Corporation|
|Analogic Corporation||GCA Corporation|
|Applicon, Inc.||GRI Computer Corporation|
|Block Research and Engineering||Haemonetics Corporation|
|Division, Bio-Rad Laboratories||Helix Technology Corporation|
|CL Systems, Inc.||Modicon, Division of Gould|
|Computer Devices, Inc.||Prime Computer, Inc.|
|Computervision Corporation||Semicon, Inc.|
|Damon Corporation||Silicon Transistor Corporation|
|Data Printer Corporation||( BBF Inc.)|
|Data Terminal Systems||Xylogics, Inc.|