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Taking The First Hurdle In New Firm Formation. The Effects Of Industry-Specific Skills And Support On Survival During The Founding Process

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  • Sierdjan Koster

    ()
    (Urban and Regional Studies Institute, University of Groningen, The Netherlands)

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    Abstract

    Successful firms are important elements of sound economic development. In order to understand the factors that influence firm success many studies have addressed this issue. Success factors in the nascent phase of firm formation are however still unclear. Even as early as in the founding stage, however, firms are discontinued and the processes in this phase hold important information about success factors. This study addresses the founding success of several founding types, including spin-outs and spin-offs. It finds that industry-specific experience of the founders is a crucial success factor. Direct support from a parent firm does however not always enhance survival. Independence rather than support appears to be important for starting a successful firm.

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    Bibliographic Info

    Article provided by Romanian Regional Science Association in its journal Romanian Journal of Regional Science.

    Volume (Year): 3 (2009)
    Issue (Month): 1 (JUNE)
    Pages: 36-62

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    Handle: RePEc:rrs:journl:v:3:y:2009:i:1:p:36-62

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    Web page: http://www.rrsa.ro

    Related research

    Keywords: Entrepreneurship; survival; resources-based theories;

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    References

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    1. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 639-74, September.
    2. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    3. Ron A. Boschma & Anet Weterings, 2004. "The effect of regional differences on the performance of software firms in the Netherlands," DRUID Working Papers 04-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Yvonne Bernardt & Joris Meijaard & Richard Kerste, 2002. "Spin-off start-ups in the Netherlands," Scales Research Reports B200106, EIM Business and Policy Research.
    5. Lewin, Peter & Phelan, Steven E, 2000. " An Austrian Theory of the Firm," The Review of Austrian Economics, Springer, vol. 13(1), pages 59-79, February.
    6. Sierdjan Koster, 2006. "Taking the First Hurdle. The Effects of Industry Specific Skills and Support on Survival During the Founding Process," ERSA conference papers ersa06p745, European Regional Science Association.
    7. Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, vol. 26(4), pages 319-335, 05.
    8. Michael S. Dahl & Toke Reichstein, 2005. "Are you experienced? Prior experience and the survival of new organizations," DRUID Working Papers 05-01, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    9. Peter Thompson & Steven Klepper, 2005. "Spinoff Entry in High-tech Industries: Motives and Consequences," Working Papers 0503, Florida International University, Department of Economics.
    10. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
    11. Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers 02-0101, University of Illinois at Urbana-Champaign, College of Business.
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    Cited by:
    1. Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2012. "R&D strategies and entrepreneurial spawning," Research Policy, Elsevier, vol. 41(1), pages 54-68.

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