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The Role of Innovation in the Postentry Performance of New Small Firms: Evidence from Italy

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  • Alessandro Arrighetti
  • Marco Vivarelli

Abstract

The purpose of this paper is to relate the start‐up decision to the postentry performance of new small firms. We use a database of 147 newly founded Italian firms that have spun‐off from existing firms. The quantitative questionnaire analysis studied the relationship between the original factors shaping the decision to start a new firm, including learning in the “mother” firm, and the postentry performance of the new initiatives. The evidence suggests that innovative motivation, innovative learning, and a higher managerial position in the original mother firm tend to be related to a superior postentry performance.

Suggested Citation

  • Alessandro Arrighetti & Marco Vivarelli, 1999. "The Role of Innovation in the Postentry Performance of New Small Firms: Evidence from Italy," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 927-939, April.
  • Handle: RePEc:wly:soecon:v:65:y:1999:i:4:p:927-939
    DOI: 10.1002/j.2325-8012.1999.tb00209.x
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    References listed on IDEAS

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    Cited by:

    1. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2009. "How do young innovative companies innovate?," Jena Economics Research Papers 2009-055, Friedrich-Schiller-University Jena.
    2. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    3. Caliendo, Marco & Kritikos, Alexander S., 2009. ""I Want to, But I Also Need to": Start-Ups Resulting from Opportunity and Necessity," IZA Discussion Papers 4661, Institute of Labor Economics (IZA).
    4. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    5. Hans Lööf & Pardis Nabavi, 2014. "Survival, productivity and growth of new ventures across locations," Small Business Economics, Springer, vol. 43(2), pages 477-491, August.
    6. Belitski, Maksim & Korosteleva, Julia & Piscitello, Lucia, 2023. "Digital affordances and entrepreneurial dynamics: New evidence from European regions," Technovation, Elsevier, vol. 119(C).
    7. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    8. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute of Labor Economics (IZA).
    9. Quatraro, Francesco & Vivarelli, Marco, 2013. "Entrepreneurship In A Developing Country Context," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201314, University of Turin.

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