This proposal develops a theoretical model for explaining the formation of strategic alliances in new high technology ventures and proposes to test it on an existing data base collected between 1978 and 1986. The data base, which contains information on strategic alliances among 105 semiconductor firms, is considered to be very comprehensive. Of particular interest is the proposed development of an explanation for how new firms faced with substantial technological and financial risk typically plan activities and devote organizational resources to survive the developmental period. Key considerations in the proposed model include the degree of risk from new technology development, the extent and type of organizational resources, the characteristics of the founding management team, and environmental variability. The project combines an advancement of organizational theory with an improved understanding of an important real-world industry, and promises to provide important additional information of general interest on the organizational characteristics andstrategies of start.up ventures.
