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

  • Alessandro Arrighetti
  • Marco Vivarelli

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.

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Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 65 (1999)
Issue (Month): 4 (April)
Pages: 927-939

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Handle: RePEc:sej:ancoec:v:65:4:y:1999:p:927-939
Contact details of provider: Web page: http://www.southerneconomic.org/

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