Theories of Strategic Management and Valuation of KnowledgeBased Companies

The valuation of a knowledge-based company is often considered a point of contention between venture capital firms and entrepreneurs. To fill this gap, the purpose of this study is to use strategic management theories to value knowledge-based companies. This study addresses research questions such as whether strategic theories (resource-based theory, industry structure effects theory, and communication network perspective theory) enable the valuation of a knowledge-based firm and how venture capitalists evaluate the importance of these theories for economic evaluation. They prioritize and change. According to the resource-based theory, internal resources (entrepreneurs' characteristics and entrepreneurial team's characteristics) help to predict the valuation of knowledge-based companies. Rooted in the perspective of industrial structure, it can be stated that a bold investment in knowledgebased companies is likely to have a higher value and is predictable depending on the specific characteristics of the industry. In the review of the research conducted in relation to the research topic, researchers have used two criteria of product differentiation and industry growth rate as structural variables of the industry. These variables can be related to the preinvestment valuation of a venture capitalist company in knowledge-based companies. Product differentiation represents the potential for growth and innovation in the market, which is a key parameter for any knowledge-based company. In addition, since a bold investment in knowledge-based companies is not implemented outside industries, the growth rate of the industry also affects the pre-investment valuation of knowledge-based companies.