Abstract
In this paper, we investigated and compared the strategy and governance of Technology-based Small Firms (TBSFs) between Japan and the US. The TBSFs in Japan were selected from SMEs which were certified by the government program of “Temporary Law Concerning Measures for the Promotion of the Creative Business Activities of Small and Medium Enterprises.” The TBSFs in the US were selected from the SMEs which received the Ben Franklin Technology Partners program in Pennsylvania. Based upon the data collected from the mail survey conducted between 2002 and 2004, the following explorative results were found. There is no difference of strategy between family business and non-family business both in Japan and the US. The visionary leadership of top management was stronger in Japan. The capital ratio by family members is higher for the successor-managed firms in the US. There is statistically significant difference of strategy and top management between the founder-managed firms and the successor-managed firms in Japan. The high performance TBSFs both in Japan and the US are likely to take the prospective strategy. However, TBSFs in Japan are more prospective and keep variety of technological resources and cost advantages. TBSFs in the US seek for niche market strategy. Regarding the characteristics of top management of the high performance TBSFs, the visionary leadership was strong in Japan and the analytical behavior based upon the industrial knowledge was emphasized in the US.
