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Employer Size and Transition to Entrepreneurship: Variations According to Organizational Position

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  • Tsuchiya, Ryuichiro
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    Abstract

    Although transition to entrepreneurship is a central subject in entrepreneurial studies, there is little research on its link with previous employer firm size. This study examines this relationship by utilizing a rich data set representing the entire Taiwanese labor market. While we found that smaller firms produce more entrepreneurs for all employees, the transitional probabilities of middle managers are higher in larger firms, indicating a specific firm size effect caused by organizational characteristics associated with position. In larger firms, the wide range of information that middle managers process facilitates entrepreneurial discoveries, and intense competition for senior management positions lowers opportunity costs.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16979/1/070econDP06-17.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2006-17.

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    Length: 26 p.
    Date of creation: Dec 2006
    Date of revision:
    Handle: RePEc:hit:econdp:2006-17

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    Related research

    Keywords: Entrepreneurship; Firm Size; Entry; Spin-off; Organizational Position;

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    1. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
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