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Employment Growth of New Firms

Author

Listed:
  • Elisabeth Garnsey
  • Petra Gibcus
  • F. Stam
  • Jennifer Telussa

Abstract

This paper provides an overview of empirical studies on employment growth in new firms and offers a systematic analysis of new empirical data to address the methodological issues identified. Using a longitudinal database of 354 firms over their first ten years, we examine factors associated with new firm growth in terms of R&D, inter-firm alliancing, new product development, and exporting; these are activities that have been identified as denoting dynamic capabilities. The empirical evidence gives some evidence for the positive association between dynamic capabilities and new firm growth. Inter-firm alliancing is the only indicator of dynamic capabilities that has a positive effect on new firm growth. No moderating effect on dynamic capabilities and growth could be seen to be exerted by the level of human capital and/or firm resources. Environmental dynamism – assumed to be highly relevant in the dynamic capability approach – is not revealed to be a moderating factor affecting the relationship between dynamic capabilities and new firm growth.

Suggested Citation

  • Elisabeth Garnsey & Petra Gibcus & F. Stam & Jennifer Telussa, 2007. "Employment Growth of New Firms," Scales Research Reports H200716, EIM Business and Policy Research.
  • Handle: RePEc:eim:papers:h200716
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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H200716.pdf
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    Cited by:

    1. Ajay Thapa, 2015. "Determinants of microenterprise performance in Nepal," Small Business Economics, Springer, vol. 45(3), pages 581-594, October.
    2. repec:eee:respol:v:46:y:2017:i:7:p:1312-1326 is not listed on IDEAS
    3. E. Stam & R. Martin, 2012. "When High Tech ceases to be High Growth: The Loss of Dynamism of the Cambridgeshire Regio," Working Papers 12-10, Utrecht School of Economics.
    4. Wolter, Hans-Jürgen & Werner, Arndt & Schneck, Stefan, 2015. "Zur Entwicklungsdynamik neugegründeter Unternehmen: Eine Längsschnittanalyse auf Basis des Umsatzsteuerpanels," IfM-Materialien 238, Institut für Mittelstandsforschung (IfM) Bonn.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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