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Panel studies of new venture creation: a methods-focused review and suggestions for future research

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  • Per Davidsson

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  • Scott Gordon

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Abstract

Longitudinal panel studies of large, random samples of business start-ups captured at the pre-operational stage allow researchers to address core issues for entrepreneurship research, namely, the processes of creation of new business ventures as well as their antecedents and outcomes. Here, we perform a methods-orientated review of all 83 journal articles that have used this type of data set, our purpose being to assist users of current data sets as well as designers of new projects in making the best use of this innovative research approach. Our review reveals a number of methods issues that are largely particular to this type of research. We conclude that amidst exemplary contributions, much of the reviewed research has not adequately managed these methods challenges, nor has it made use of the full potential of this new research approach. Specifically, we identify and suggest remedies for context-specific and interrelated methods challenges relating to sample definition, choice of level of analysis, operationalization and conceptualization, use of longitudinal data and dealing with various types of problematic heterogeneity. In addition, we note that future research can make further strides towards full utilization of the advantages of the research approach through better matching (from either direction) between theories and the phenomena captured in the data, and by addressing some under-explored research questions for which the approach may be particularly fruitful. Copyright Springer Science+Business Media, LLC. 2012

Suggested Citation

  • Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
  • Handle: RePEc:kap:sbusec:v:39:y:2012:i:4:p:853-876
    DOI: 10.1007/s11187-011-9325-8
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    File URL: http://hdl.handle.net/10.1007/s11187-011-9325-8
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    References listed on IDEAS

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    Cited by:

    1. Christian Hopp & Ute Stephan, 2012. "The influence of socio-cultural environments on the performance of nascent entrepreneurs: Community culture, motivation, self-efficacy and start-up success," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(9-10), pages 917-945, December.
    2. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    3. Alina Sorgner & Michael Fritsch & Alexander Kritikos, 2017. "Do entrepreneurs really earn less?," Small Business Economics, Springer, vol. 49(2), pages 251-272, August.
    4. Martin Lukeš & Jan Zouhar, 2016. "The Causes of Early-Stage Entrepreneurial Discontinuance," Prague Economic Papers, University of Economics, Prague, vol. 2016(1), pages 19-36.
    5. repec:rss:jnljms:v7i5p5 is not listed on IDEAS
    6. Casey J. Frid & David M. Wyman & Bentley Coffey, 2016. "Effects of wealth inequality on entrepreneurship," Small Business Economics, Springer, vol. 47(4), pages 895-920, December.
    7. Crawford, G. Christopher & Aguinis, Herman & Lichtenstein, Benyamin & Davidsson, Per & McKelvey, Bill, 2015. "Power law distributions in entrepreneurship: Implications for theory and research," Journal of Business Venturing, Elsevier, vol. 30(5), pages 696-713.
    8. Gottschalk, Sandra & Greene, Francis J. & Höwer, Daniel & Müller, Bettina, 2014. "If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival," ZEW Discussion Papers 14-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    9. Andrea Asoni & Tino Sanandaji, 2016. "Identifying the effect of college education on business and employment survival," Small Business Economics, Springer, vol. 46(2), pages 311-324, February.
    10. repec:eee:jbvent:v:32:y:2017:i:6:p:694-706 is not listed on IDEAS
    11. Thorsten Semrau & Christian Hopp, 2016. "Complementary or compensatory? A contingency perspective on how entrepreneurs’ human and social capital interact in shaping start-up progress," Small Business Economics, Springer, vol. 46(3), pages 407-423, March.
    12. Michela Loi & Maria Chiara Di Guardo, 2015. "A Start-Up Generation Approach For Teaching Entrepreneurship: An Overview Of Affective Learning Results," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-16, December.
    13. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9793-y is not listed on IDEAS
    14. repec:elg:eechap:14395_27 is not listed on IDEAS
    15. Kim, Phillip H. & Longest, Kyle C. & Lippmann, Stephen, 2015. "The tortoise versus the hare: Progress and business viability differences between conventional and leisure-based founders," Journal of Business Venturing, Elsevier, vol. 30(2), pages 185-204.
    16. Diana M. Hechavarría & Charles H. Matthews & Paul D. Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    17. Arndt Werner & Johanna Gast & Sascha Kraus, 2014. "The effect of working time preferences and fair wage perceptions on entrepreneurial intentions among employees," Small Business Economics, Springer, vol. 43(1), pages 137-160, June.
    18. Veroniek Collewaert & Frederik Anseel & Michiel Crommelinck & Alain De Beuckelaer & Jacob Vermeire, 2016. "When Passion Fades: Disentangling the Temporal Dynamics of Entrepreneurial Passion for Founding," Journal of Management Studies, Wiley Blackwell, vol. 53(6), pages 966-995, September.

    More about this item

    Keywords

    Nascent entrepreneur; New venture creation; Panel study; Process; Review; Research methods; Start-up; L26; M13; O31; D22; C33;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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