Prior tacit knowledge and first-year sales: A study of technology entrepreneurship

The first sale of a new venture represents an important entrepreneurial event and how to achieve sales sooner, rather than later, is an important question. This study investigates how the prior tacit knowledge of technology entrepreneurs relates to achieving sales in the first-year. Findings from a sample of 145 technology entrepreneurs operating within university-affiliated incubators suggest that differences in tacit knowledge at opportunity discovery are critical to making first-year sales. Achieving sales was positively associated with prior hands-on experiences with development of products or services as well as prior experiences within markets. I show how differences in tacit knowledge form knowledge configurations, or gestalts, useful for understanding how some entrepreneurs achieve sales sooner. The results shed light on the types and combinations of prior tacit knowledge that facilitate an early sales advantage. Recommendations for entrepreneurship education and research are provided.