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An Empirical Investigation Of The Impact Of Luck On Small Business Performance: Dynamic Panel Data Evidence

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  • Victor Oladapo
  • Godwin Onyeaso

Abstract

Luck is a critical variable in small business strategy. However, there is little empirical evidence about the role of luck. This study responded to calls for empirical research using nonstandard statistical techniques to probe the dynamic trajectory of luck on firm performance. We analyze six-year annual panel data, elicited from eleven small business owner or managers. We use the Generalized Method of Moments, GMM-Systems, econometric technique. The results provide statistically significant empirical evidence suggesting that Luck was a determinant of small business economic performance. In previous research, luck was not found to be a significant determinant of firm performance. However, previous performance was found to be a significant determinant of the current level of small business performance.

Suggested Citation

  • Victor Oladapo & Godwin Onyeaso, 2012. "An Empirical Investigation Of The Impact Of Luck On Small Business Performance: Dynamic Panel Data Evidence," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(3), pages 29-41.
    • Handle: RePEc:ibf:ijmmre:v:5:y:2012:i:3:p:29-41
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    More about this item

    Keywords

    Luck; Resource-based View; GMM; AR1; AR2;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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