Evolving toward product and market-orientation: The early years of technology-based firms

Research studies of 114 technology-based firms within the Greater Boston area indicate evolution over the first several years after founding toward: (a) more product-oriented businesses, away from consulting and R&D contracting; and (b) increased orientation of the founders to sales and marketing, with lessened emphasis on engineering. Evolution toward market-orientation is manifested in many ways. The use of direct sales forces as well as sales representatives both grow over time, as does the adoption of more formal mechanisms such as marketing departments, sales forecasting and analyses of potential markets. Greater orientation toward marketing in all its dimensions is especially true for multi-founder firms, the single founder company being slower to evolve in the characteristics cited.