Size Really Matters--New Insights for Start-ups' Survival
AbstractThis paper presents new evidence regarding a firm's probability for survival, based on the network structure of the firm's managers. We found that start-ups that have larger informal communication networks increased their chance to survive external shock. Original data have been collected from Israeli software start-ups during the dot-com economic growth. About eight years later, we added information about their ability to survive the burst of the dot-com bubble. From a theoretical point of view, this paper highlights the power of the classic social networks approach in explaining organizational performance. From a practical point of view, these findings offer some guidelines for managers of start-ups. Our results show that the size of informal interfirm networks really matters.
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Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 53 (2007)
Issue (Month): 2 (February)
organizational studies; strategy; communication networks; start-ups;
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- Walter, Sascha & Heinrichs, Simon & Walter, Achim, 2013. "Hostile Parent Firms and Child Firm Performance," EconStor Preprints 68592, ZBW - German National Library of Economics.
- Kai Fischbach & Peter A. Gloor & Detlef Schoder, 2009. "Analysis of Informal Communication Networks – A Case Study," Business & Information Systems Engineering, Springer, vol. 1(2), pages 140-149, April.
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