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.
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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
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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)
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