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To Survive or not to Survive: Findings from PLS-SEM on the Relationship Between Organizational Resources and Startups’ Survival

In: Partial Least Squares Path Modeling

Author

Listed:
  • Jubalt Alvarez-Salazar

    (Pontificia Universidad Católica del Perú)

  • Jean Pierre Seclen-Luna

    (Pontificia Universidad Católica del Perú)

Abstract

This study explores the phenomenon of startup survivalStartup survival in an incipient entrepreneurship ecosystem. For this purpose, multiple and simultaneous relationships between organizational resources, incubation, and startup survivalStartup survival are validated empirically. The analysis used PLS-SEMPartial Least Squares (PLS)structural equation model (PLS-SEM) on a sample of 119 startups operating in different markets in Peru. The results show that survival is explained directly by a combination of entrepreneurial and organizational capitalOrganizational capital but indirectly by a chain of causal links. In this way, social capitalSocial capital determines human capitalHuman capital, and human capitalHuman capital also determines entrepreneurial capitalEntrepreneurial capital. Thus, this study contributes to the literature in management and entrepreneurship with one alternative way to measure a phenomenon of greater complexity to demonstrate the survival of Peruvian startups.

Suggested Citation

  • Jubalt Alvarez-Salazar & Jean Pierre Seclen-Luna, 2023. "To Survive or not to Survive: Findings from PLS-SEM on the Relationship Between Organizational Resources and Startups’ Survival," Springer Books, in: Hengky Latan & Joseph F. Hair, Jr. & Richard Noonan (ed.), Partial Least Squares Path Modeling, edition 2, chapter 0, pages 329-374, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-37772-3_12
    DOI: 10.1007/978-3-031-37772-3_12
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