A study of the competitive advantage in successful New Technology Based Firms found that their technology strategy played a key role for making these companies improve their competitive advantage. We appealed to the grounded theory as a qualitative strategy to build theory, and to the exploratory case-study methodology to effectively understand this phenomenon in specific contexts as the one represented by small entrepreneurial firms in comparison with large established firms. A suitable comprehension of the different contexts required of a view of technology strategy that is more dynamic than those typically available. We build an explanatory model which integrates and groups the propositions previously developed. We view the study as exploratory to a class of studies aimed at understanding the technology strategy process in new ventures.