This paper elaborates a theory from the existing literature on subjects about entrepreneurship, strategy and innovation. Dubin’s methodology approach is used in order to develop a theory that helps better understand the strategic posture adopted by a New Technology Based Firm in its competitive environment. The theory proposes the competitive context conditions as precedents of the dominant logic and the technology strategy, which, in turn, influence in the competitive behavior adopted by the new firm. An Entrepreneurial Orientation by the new firm, combined with very particular dynamic capabilities, improve the firm’s performance. From the achieved performance, a feedback process to the strategic stance initiates. In addition to the theory, interaction laws, a set of propositions, as well as suggestions for future research projects are presented.