Is Success Hereditary? Evidence on the Performance of Spawned Ventures
AbstractA common phenomenon in entrepreneurship is that employees turn away from employmentto found their own businesses. Prior literature discusses the former employers’characteristics that influence the creation of entrepreneurial ventures. An investigation ofwhether these characteristics also affect the success of the spawned ventures is missing so far. This paper contributes to the literature by showing that entrepreneurial ventures spawned by well performing firms are financially more successful than ventures stemming from bad performing firms. This suggests that spawned entrepreneurs are able to exploit valuable knowledge from their previous employers which impacts their ventures’ performance positively. The analysis is based on a linked employee-employer dataset for the Netherlands for the period 1999-2004.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 034.
Date of creation: 2011
Date of revision:
Contact details of provider:
Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
Other versions of this item:
- Johannes Dick & Katrin Hussinger & Boris Blumberg & John Hagedoorn, 2013. "Is success hereditary? Evidence on the performance of spawned ventures," Small Business Economics, Springer, vol. 40(4), pages 911-931, May.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-02 (All new papers)
- NEP-CSE-2011-07-02 (Economics of Strategic Management)
- NEP-ENT-2011-07-02 (Entrepreneurship)
- NEP-SBM-2011-07-02 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ari Hyytinen & Mika Maliranta, 2008. "When Do Employees Leave Their Job for Entrepreneurship?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(1), pages 1-21, 03.
- Morten Bennedsen & Kasper Meisner Nielsen & Francisco Pérez-González & Daniel Wolfenzon, 2007. "Inside the Family Firm: the Role of Families in Succession Decisions and Performance," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 647-691, 05.
- Venkataraman, Sankaran, 2004. "Regional transformation through technological entrepreneurship," Journal of Business Venturing, Elsevier, vol. 19(1), pages 153-167, January.
- Cooper, Arnold C., 1985. "The role of incubator organizations in the founding of growth-oriented firms," Journal of Business Venturing, Elsevier, vol. 1(1), pages 75-86.
- Robinson, Kenneth Charles, 1999. "An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures," Journal of Business Venturing, Elsevier, vol. 14(2), pages 165-187, March.
- 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.
- Czarnitzki, Dirk & Dick, Johannes M.H. & Hussinger, Katrin, 2010.
"The contribution of corporate ventures to radical innovation,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/281798, Katholieke Universiteit Leuven.
- Czarnitzki, Dirk & Dick, Johannes M. H. & Hussinger, Katrin, 2010. "The contribution of corporate ventures to radical innovation," ZEW Discussion Papers 10-060, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Murphy, Gregory B. & Trailer, Jeff W. & Hill, Robert C., 1996. "Measuring performance in entrepreneurship research," Journal of Business Research, Elsevier, vol. 36(1), pages 15-23, May.
- April Mitchell Franco & Darren Filson, 2000.
"Knowledge Diffusion through Employee Mobility,"
Claremont Colleges Working Papers
2000-61, Claremont Colleges.
- Hellmann, Thomas F., 2002.
"When Do Employees Become Entrepreneurs?,"
1770, Stanford University, Graduate School of Business.
- Steven Klepper & Sally Sleeper, 2005.
"Entry by Spinoffs,"
INFORMS, vol. 51(8), pages 1291-1306, August.
- Jerry A. Hausman & Bronwyn H. Hall & Zvi Griliches, 1984.
"Econometric Models for Count Data with an Application to the Patents-R&D Relationship,"
NBER Technical Working Papers
0017, National Bureau of Economic Research, Inc.
- Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-38, July.
- Jens Matthias Arnold & Katrin Hussinger, 2003.
"Export Behavior and Firm productivity in German Manufacturing. A Firm-Level Analysis,"
Development Working Papers
184, Centro Studi Luca d\'Agliano, University of Milano.
- Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(2), pages 219-243, July.
- Arnold, Jens Matthias & Hussinger, Katrin, 2004. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-level Analysis," ZEW Discussion Papers 04-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Jens Matthias Arnold & Katrin Hussinger, 2004. "Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis," International Trade 0403007, EconWPA, revised 02 Nov 2004.
- Guido Buenstorf, 2007. "Opportunity Spin-offs and Necessity Spin-offs," Papers on Economics and Evolution 2007-18, Max Planck Institute of Economics, Evolutionary Economics Group.
- Cassiman , Bruno & Ueda, Masako, 2002.
"Optimal project rejection and new firm start-ups,"
IESE Research Papers
D/460, IESE Business School.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Timothy Bates, 2002.
"Analysis of Young Small Firms That Have Closed: Delineating Successful from Unsuccessful Closures,"
02-24, Center for Economic Studies, U.S. Census Bureau.
- Bates, Timothy, 2005. "Analysis of young, small firms that have closed: delineating successful from unsuccessful closures," Journal of Business Venturing, Elsevier, vol. 20(3), pages 343-358, May.
- Daniel W. Elfenbein & Barton H. Hamilton & Todd R. Zenger, 2010. "The Small Firm Effect and the Entrepreneurial Spawning of Scientists and Engineers," Management Science, INFORMS, vol. 56(4), pages 659-681, April.
- HansK. Hvide, 2009.
"The Quality of Entrepreneurs,"
Royal Economic Society, vol. 119(539), pages 1010-1035, 07.
- Edward P. Lazear, 2004. "Balanced Skills and Entrepreneurship," American Economic Review, American Economic Association, vol. 94(2), pages 208-211, May.
- Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984.
"Pseudo Maximum Likelihood Methods: Theory,"
Econometric Society, vol. 52(3), pages 681-700, May.
- Peter Thompson & Steven Klepper, 2009.
"Disagreements and Intra-Industry Spinoffs,"
0907, Florida International University, Department of Economics.
- David B. Audretsch & Max Keilbach, 2007.
"The Localization of Entrepreneurship Capital - Evidence from Germany,"
Jena Economic Research Papers
2007-029, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- David B. Audretsch & Max Keilbach, 2007. "The localisation of entrepreneurship capital: Evidence from Germany," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 351-365, 08.
- Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press, vol. 16(2), pages 213-238, April.
- Paul Gompers & Josh Lerner, 2001. "The Venture Capital Revolution," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 145-168, Spring.
- David Audretsch & Max Keilbach, 2005. "Entrepreneurship capital and regional growth," The Annals of Regional Science, Springer, vol. 39(3), pages 457-469, 09.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charles Bollen).
If references are entirely missing, you can add them using this form.