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The "When, Where, and How" of Entrant Survival: The Effects of Knowledge Regime, Technological Intensity and Start-Up Size on New Venture Survival

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  • Sarkar, M. B.

    (U of Central Florida)

  • Echambadi, Raj

    (U of Central Florida)

  • Agarwal, Rajshree

    (U of Illinois at Urbana-Champaign)

  • Sen, Bisakha

    (U of Central Florida)

Abstract

In this research, we seek to advance the understanding of heterogeneity in entrant survival rates. We suggest that the innovative environment at the time of entry can explain the variation in likelihood of survival for entrants. We conceptualize innovative environment in terms of two dimensions: the technological regime operating in a specific industry at the time of entry, and the technology intensity in the specific industry, and argue that the coexistence of certain states of these two dimensions of the innovative environment is important in explaining differences in entrant survival rates. Further, we propose that start-up size differentially impacts the relationship between the innovative environment at the time of entry and entrant survival. Empirical tests done on a unique longitudinal dataset of 3431 firms in 33 product innovations spanning over 80 years reveal support for the contingency hypothesis. Theoretical and practical implications of the findings are discussed.

Suggested Citation

  • Sarkar, M. B. & Echambadi, Raj & Agarwal, Rajshree & Sen, Bisakha, 2002. "The "When, Where, and How" of Entrant Survival: The Effects of Knowledge Regime, Technological Intensity and Start-Up Size on New Venture Survival," Working Papers 02-0102, University of Illinois at Urbana-Champaign, College of Business.
    • Handle: RePEc:ecl:illbus:02-0102
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