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Taking The First Hurdle In New Firm Formation. The Effects Of Industry-Specific Skills And Support On Survival During The Founding Process

Author

Listed:
  • Sierdjan Koster

    () (Urban and Regional Studies Institute, University of Groningen, The Netherlands)

Abstract

Successful firms are important elements of sound economic development. In order to understand the factors that influence firm success many studies have addressed this issue. Success factors in the nascent phase of firm formation are however still unclear. Even as early as in the founding stage, however, firms are discontinued and the processes in this phase hold important information about success factors. This study addresses the founding success of several founding types, including spin-outs and spin-offs. It finds that industry-specific experience of the founders is a crucial success factor. Direct support from a parent firm does however not always enhance survival. Independence rather than support appears to be important for starting a successful firm.

Suggested Citation

  • Sierdjan Koster, 2009. "Taking The First Hurdle In New Firm Formation. The Effects Of Industry-Specific Skills And Support On Survival During The Founding Process," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(1), pages 36-62, JUNE.
  • Handle: RePEc:rrs:journl:v:3:y:2009:i:1:p:36-62
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    File URL: http://www.rrsa.ro/rjrs/V312.KOSTER.PDF
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    References listed on IDEAS

    as
    1. Michael Dahl & Toke Reichstein, 2007. "Are You Experienced? Prior Experience and the Survival of New Organizations," Industry and Innovation, Taylor & Francis Journals, pages 497-511.
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    3. Colombo, Massimo G. & Grilli, Luca, 2005. "Founders' human capital and the growth of new technology-based firms: A competence-based view," Research Policy, Elsevier, pages 795-816.
    4. Lewin, Peter & Phelan, Steven E, 2000. "An Austrian Theory of the Firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 13(1), pages 59-79, February.
    5. Anet Weterings & Ron Boschma, 2004. "The effect of regional differences on the performance of software firms in the Netherlands," ERSA conference papers ersa04p208, European Regional Science Association.
    6. Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, pages 319-335.
    7. Marco Gelderen & Roy Thurik & Niels Bosma, 2005. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, pages 365-380.
    8. Ron A. Boschma & Anet B.R. Weterings, 2005. "The effect of regional differences on the performance of software firms in the Netherlands," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 567-588, October.
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    10. Agarwal, Rajshree & Echambadi, Raj & Franco, April M. & Sarkar, M. B., 2002. "Knowledge Transfer through Congenital Learning: Spin-Out Generation, Growth and Survival," Working Papers 02-0101, University of Illinois at Urbana-Champaign, College of Business.
    11. Sierdjan Koster, 2006. "Taking the First Hurdle. The Effects of Industry Specific Skills and Support on Survival During the Founding Process," ERSA conference papers ersa06p745, European Regional Science Association.
    12. Michael Dahl & Toke Reichstein, 2007. "Are You Experienced? Prior Experience and the Survival of New Organizations," Industry and Innovation, Taylor & Francis Journals, pages 497-511.
    13. Marco Gelderen & Roy Thurik & Niels Bosma, 2006. "Success and Risk Factors in the Pre-Startup Phase," Small Business Economics, Springer, pages 319-335.
    14. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    15. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, pages 639-674.
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    Citations

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    Cited by:

    1. Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2010. "R&D Strategies and Entrepreneurial Spawning," Working Paper Series in Economics and Institutions of Innovation 228, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2012. "R&D strategies and entrepreneurial spawning," Research Policy, Elsevier, pages 54-68.

    More about this item

    Keywords

    Entrepreneurship; survival; resources-based theories;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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