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The Role of Innovation in the Postentry Performance of New Small Firms: Evidence from Italy

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  • Alessandro Arrighetti
  • Marco Vivarelli

Abstract

The purpose of this paper is to relate the start-up decision to the postentry performance of new small firms. We use a database of 147 newly founded Italian firms that have spun-off from existing firms. The quantitative questionnaire analysis studied the relationship between the original factors shaping the decision to start a new firm, including learning in the “mother” firm, and the postentry performance of the new initiatives. The evidence suggests that innovative motivation, innovative learning, and a higher managerial position in the original mother firm tend to be related to a superior postentry performance.

Suggested Citation

  • Alessandro Arrighetti & Marco Vivarelli, 1999. "The Role of Innovation in the Postentry Performance of New Small Firms: Evidence from Italy," Southern Economic Journal, Southern Economic Association, vol. 65(4), pages 927-939, April.
  • Handle: RePEc:sej:ancoec:v:65:4:y:1999:p:927-939
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